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Bill Ackman Ira Sohn Presentation 2010

Bill Ackman Ira Sohn Presentation 2010

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11/21/2012

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Sections

  • The Housing Market is Showing Signs of Improvement
  • Mall REIT Comp Tenant Sales Growth Positive in Q1’10
  • Illustrative PF GGP Valuation at Various Share Prices
  • GGP Currently Trades at a Meaningful Cap Rate Spread to Simon
  • PF GGP Will Have An Industry Leading Balance Sheet
  • PF GGP Will Have Industry Leading Operating Metrics
  • Aliansce
  • What is General Growth Opportunities?
  • GGO IPO Participation
  • GGO IPO Participation (Cont.)
  • Buy Christine Richard’s Book, and Tell Your Friends
  • And one more thing…
  • PF GGP Debt Detail –Interest / Duration / Non-Recourse
  • GGP Debt Detail –Non-Debtor Consolidated Debt
  • GGP Debt Detail –Joint Venture Debt (excluding Consolidated JVs)

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Pershing Square Capital Management, L.P.

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The analyses and conclusions of Pershing Square Capital Management, L.P. ("Pershing Square") contained in this presentation are based on publicly available information. Pershing Square recognizes that there may be confidential information in the possession of the companies discussed in the presentation that could lead these companies to disagree with Pershing Square’s conclusions. This presentation and the information contained herein is not a recommendation or solicitation to buy or sell any securities. The analyses provided may include certain statements, estimates and projections prepared with respect to, among other things, the historical and anticipated operating performance of the companies, access to capital markets and the values of assets and liabilities. Such statements, estimates, and projections reflect various assumptions by Pershing Square concerning anticipated results that are inherently subject to significant economic, competitive, and other uncertainties and contingencies and have been included solely for illustrative purposes. No representations, express or implied, are made as to the accuracy or completeness of such statements, estimates or projections or with respect to any other materials herein. Actual results may vary materially from the estimates and projected results contained herein. Funds managed by Pershing Square and its affiliates have invested in long and short positions in various securities and financial instruments. Pershing Square manages funds that are in the business of actively trading – buying and selling – securities and financial instruments. Pershing Square may currently or in the future change its position regarding any of the securities it owns. Pershing Square reserves the right to buy, sell, cover or otherwise change the form of its investment in any company for any reason. Pershing Square hereby disclaims any duty to provide any updates or changes to the analyses contained here including, without limitation, the manner or type of any Pershing Square investment.

1

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.GGP Part II May 26.P. 2010 Pershing Square Capital Management. L.

and other commitments to recapitalize that company. Pershing Square hereby disclaims any duty to provide any updates or changes to the analyses contained here including. The analyses provided may include certain statements. and projections reflect various assumptions by Pershing Square concerning anticipated results that are inherently subject to significant economic.Disclaimer The analyses and conclusions of Pershing Square Capital Management. sell. estimates and projections prepared with respect to. the manner or type of any Pershing Square investment. access to capital markets and the values of assets and liabilities. Pershing Square reserves the right to buy. competitive. L. In particular. funds managed by Pershing Square and its affiliates have invested in long and short positions of certain mall REITs. ("Pershing Square") contained in this presentation are based on publicly available information. including long debt and equity positions in General Growth Properties Inc. 1 . and other uncertainties and contingencies and have been included solely for illustrative purposes. Pershing Square may currently or in the future change its position regarding any of the securities it owns. No representations. estimates or projections or with respect to any other materials herein.P. Pershing Square manages funds that are in the business of actively trading – buying and selling – securities and financial instruments. cover or otherwise change the form of its investment in any company for any reason. are made as to the accuracy or completeness of such statements. without limitation. express or implied. among other things. Such statements. Pershing Square recognizes that there may be confidential information in the possession of the companies discussed in the presentation that could lead these companies to disagree with Pershing Square’s conclusions. This presentation and the information contained herein is not a recommendation or solicitation to buy or sell any securities. estimates. the historical and anticipated operating performance of the companies.

At Last Year’s Ira Sohn Conference, We Delivered a 67-page Presentation on General Growth Entitled:

The Buck’s Rebound Begins Here
May 27, 2009

Pershing Square Capital Management, L.P.
2

On Page 34 of The Buck’s Rebound Begins Here, We Proposed the Following Solution for GGP to Address Its Bankruptcy
A seven-year extension of GGP’s secured and unsecured loans at their existing interest rates would provide the Company with sufficient time to use cash flow from operations to delever its balance sheet. With a sevenyear extension, we believe the Company would be able to repay existing creditors in full
Benefits of this Approach:

Secured and unsecured lenders receive 100% of the present value of their claims Prevents the liquidation of assets at “fire-sale” prices Preserves value for equity holders GGP platform remains intact Preserves jobs
________________________________________________

Source: See page 34 of “The Buck’s Rebound Begins Here,” May 27, 2009.

3

GGP’s Bankruptcy has Progressed Largely as We Expected
All of GGP’s property-level debtors have consensually agreed to extend $15bn of secured debt The weighted average contract interest rate for these loans is 5.07%, which is lower than the original interest rate
(1)

The weighted average duration of the loans is 6.5 years from January 1, 2010
(1)

GGP has avoided a “fire-sale” of its assets Equity value has been enhanced While we suggested a maturity extension of GGP’s unsecured debt, the vast majority of it will be repaid at emergence

________________________________________________ (1) Source: GGP Press Release (4/29/10).

4

GGP has Secured a Commitment for Enough Capital to Repay its Unsecured Creditors in Full at Par Plus Accrued ________________________________________________ (1) Source: GGP Press Release (5/3/10). 5 .

19 as of last year’s Ira Sohn Conference $14 Apr-09 Jul-09 Oct-09 Feb-10 May-10 Source: Capital IQ (as of 5/28/10).The Buck Has Rebounded Though GGP’s stock price has risen more than 1000% over the past year. its TEV has only increased 12%. This compares to Simon Property Group (“SPG” or “Simon”) whose TEV has risen 29% over the same period GGP Stock Price Performance $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Jan-09 ________________________________________________ GGP traded at $1. 6 .

A Little Context… .

At the Beginning of 2009.S. consumer had hit the wall Mall REITs had limited access to capital Cap rates increased and transactions stopped as bidask spreads widened Bankruptcy risk and tenant “right-sizing” initiatives were expected to result in massive store closures Rent relief was a serious concern Tenant sales were expected to continuously decline 8 Since Then… . economy was in a serious recession The U.S. The World was a Very Different Place for Mall REITs The U.

S. Real GDP growth has been positive the past three quarters Real GDP (% Change) 8.5% 5.S. .0% 0.0% 4.0% 2.0%) (8.0% 6.0%) (6.0% (0.2% 2.4%) 1.7%) (2.4%) (6.7%) (4. Economy Recovering U.0%) (5.6% 3.0%) (2.U.0% Q2’08 ________________________________________________ Q3’08 Q4’08 Q1’09 9 Q2’09 Q3’09 Q4’09 Q1’10 Source: Bureau of Economic Analysis (5/27/10).

which tracks pricing on a basket of 2006 vintage subprime loans.AAA 06-2 Index ________________________________________________ Source: Bloomberg (as of 5/28/10). has marched upward over the past year Markit ABX.HE.The Housing Market is Showing Signs of Improvement The ABX AAA 06-2 Index. 10 .

.2 63.1 60.0 Sept-Nov 2008 ________________________________________________ Dec-Feb 2009 Mar-May 2009 Jun-Aug 2009 11 Sept-Nov 2009 Dec-Feb 2010 Mar-May 2010 Source: University of Michigan / Bloomberg.Consumer Confidence is Up The University of Michigan Survey of Consumer Confidence Sentiment Index has improved since the beginning of 2009 University of Michigan Consumer Confidence Index (Trailing Three Month Average) 75.0 70.1 65.0 67.0 59.0 61.0 50.5 73.5 70.7 55. Most recent data point available as of 5/28/10.5 73.

S. Personal Saving as a Percentage of Disposable Personal Income 7.0% Apr-00 Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 12 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 ________________________________________________ Source: Bloomberg / Bureau of Economic Analysis (as of 5/28/10).8% 3.6% 1.0% Average: 2.0% 2. the U.S. personal savings rate has reverted to near its 10-yr average U. Most recent data point as of Apr-10.0% 5.Personal Savings Rate Reverting After peaking in May 2009.0% 3.0% 4.0% 0.0% LTM 6. .

13 .Mall Traffic Improving Consumers are returning to malls as evidenced by positive mall traffic trends year-to-date in 2010 ________________________________________________ Source: Jefferies equity research (4/22/10).

” – Rick Sokolov.Retail Construction Remains at a 20-Year Low “And frankly. 14 . when you look at the capital situation today. 2009 ________________________________________________ Source: Goldman Sachs equity research November 2009. COO of Simon Property Group. the construction in the retail sector is at a 20-year low. We certainly anticipate it will remain there. and the lack of new supply can only hopefully help the demand side for the existing product. December 4.

Simon announced the sale of $2.Mall REITs Have Regained Access to Capital Simon Debt Issuances On March 25.65% notes yielding 5. 2010.35% senior notes due 2019 On January 19. more than 25% of its market cap.70% Macerich Equity Issuance Macerich Issues Biggest Share Offer On Record – WSJ 4/15/10 Macerich raised $1. including: $400mm of 4. 15 . 4/15/10.5mm anticipated share sale announcement on April 14th ________________________________________________ Source: The Wall Street Journal.25bn of senior unsecured notes. 2009. representing the largest secondary stock offering by a REIT on record The 30mm share sale was 62% over-subscribed relative to the original 18.23bn in equity at a ~7.25bn of 5.0% cap rate.25% $1.20% notes due 2015 yielding 4. Simon announced the completion of the issuance of $650 million of 10.

1% ________________________________________________ Source: Green Street (as of 5/1/10).0% 5.Mall REIT Cap Rates Have Declined and Should Decline Further Based on Historical Precedent Although Mall REIT cap rates have come in from their double-digit highs.4% 6.5% 9.0% 7. mall REITs still trade at a discount to corporate Baa yields Mall Implied Cap Rate vs. Baa Yields 10.0% Ja nM 05 ar -0 M 5 ay -0 Ju 5 lSe 05 p0 N 5 ov -0 Ja 5 nM 06 ar -0 M 6 ay -0 Ju 6 l-0 Se 6 p0 N 6 ov -0 Ja 6 n0 M 7 ar -0 M 7 ay -0 Ju 7 lSe 07 p0 N 7 ov -0 Ja 7 nM 08 ar -0 M 8 ay -0 Ju 8 lSe 08 p0 N 8 ov -0 Ja 8 nM 09 ar -0 M 9 ay -0 9 Ju l-0 Se 9 p0 N 9 ov -0 Ja 9 nM 10 ar -1 M 0 ay -1 0 Mall Implied Cap Rate Baa 6.5% 5.5% 8.0% 6. Most recent available.0% 8.5% 6.0% 9. 16 .5% 7.

2% 1.0% Q4'08 Q1'09 17 Q2'09 Q3'09 Q4'09 Q1'10 Source: Taubman quarterly financial supplements.Tenant Bankruptcies Have Decreased Taubman’s reported tenant bankruptcies dropped to 0% in Q1’10 Taubman Reported Tenant Bankruptcy Filings as a % of Total Tenants 1.1% 0. .9% 1.1% 0.0% Q3'08 ________________________________________________ 0.3% 0.6% 0.9% 1.8% 0.0% 0.1% 0.5% 1.

Tenant CDS Spreads Have Narrowed Mall tenant CDS spreads have narrowed approximately 400 basis points from peak levels seen in 2009 GGP Top 10 Tenants CDS Basket 600bps 500bps 400bps 300bps 200bps 139bps 100bps 0bps Jan-09 ________________________________________________ Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Note: Represents an equal-weighted basket of CDS prices for GGP’s top 10 tenants (where CDS pricing is available). Source: Bloomberg (5/28/10). JC Penney and Macy’s. Limited. 18 . which include Gap.

we hadn’t seen much of it year-to-date.Rent Relief Less of an Issue than Originally Anticipated Simon expects to lose less than 2bps of total revenue as the result of rent relief concessions in 2009 “Our 2009 rent relief total will be under $10 million. October 30. So it’s a little back-end weighted.” – Steve Sterrett. 2009 19 . But it’s a small number in the context of the size of our income statements. CFO of Simon Property Group. as in the $7 million to $8 million range. But as I think we said on the call last quarter. and as you look at the impact of average base rent it could have a nominal impact.

Mall Leasing Activity Picking Up Substantially “Retail leasing activity increased significantly in the first quarter of 2010.” – GGP Q1’10 Operating Supplement 20 . the Company expects lease rates to reflect those increases over time. representing new deal square footage of approximately 284 thousand square feet. Although rents remain below 2007 peak levels. the number of new lease deals grew 84%. Within total deals. an increase of 21% over the same period of last year.36 million square feet signed. As sales continue their upward trend. with total in-line and outparcel tenant leasing deals covering 1. they have stabilized.

21 .Tenant Sales Growing Quickly Anchor tenant same store sales have turned from negative in late 2008 and 2009 to materially positive so far in 2010 ________________________________________________ Source: “Why the Sad Face Mall Sector?” Credit Suisse equity research (4/26/10).

Mall REIT Comp Tenant Sales Growth Positive in Q1’10 8. “On a quarterly basis.5% 6. with February and March showing accelerating increases of 6.0% 7.3% 4.S.5% year-over-year.4% 2. comparable tenant sales rose a healthy 7.0% 0.” 22 – GGP Q1’10 Operating Supplement . with momentum picking up over the course of the quarter.0% Based on Westfield’s U.0% 5. respectively.0% and 10.0% 3.6% 6. January 2010 comparable sales increased 2.0%.5% year-over-year. portfolio only.

The World has Improved Dramatically The U. economy has recovered The U.S. consumer is bouncing back Mall traffic is increasing Demand for mall REIT debt and equity capital is high Cap rates have declined substantially Store closure fears were overblown Tenants are much better capitalized Rent relief has been minimal Tenant sales have returned to growth 23 .S.

e. South St Seaport) Non-income producing assets (i.e. Victoria Ward. Fashion Show air rights) Other assets Estimated Value: ~$15 24 Estimated Value: ~$5 .What Will GGP Look Like When It Emerges? GGP will emerge as two separate companies: General Growth Properties (“PF GGP”) and General Growth Opportunities (“GGO”) PF GGP Ownership or management of approximately 200 regional malls Community / strip retail centers Office properties GGMI 13 underperforming malls (“Special Consideration Properties” or “SCPs”) assumed to be transferred to lenders GGO Master Planned Communities (“MPC”) Development assets (i.

PF GGP .

but similar NOI PF GGP will be a portfolio of approx. 200 regional malls and other assets ~80% of its financing will be single-property. and elimination of deferred tax liabilities High Quality Approximately 100 of PF GGP’s malls are high-quality. non-recourse debt Removal of SCPs.Why is PF GGP a Good Investment? Low Risk PF GGP will emerge with much less debt. “mini-monopolies” within their respective markets A disproportionate share of PF GGP’s NOI is generated by its top assets Events of the past two years have further confirmed that high quality mall assets are recession-resistant Recent Underperformance Creates Future Upside Two years of financial distress have caused GGP to underperform its peer group Investors get the benefit of a turnaround opportunity without the risk 26 . settlement of Hughes claim.

it can be replaced at little cost Malls have a 50-year track record of stability and strong performance This “bond” portfolio is inflation-protected due to percentage rent and the rollover of 10-15% of leases per annum 27 . restaurants and entertainment concepts. the credit quality of the “bonds” has improved as tenant credit quality has strengthened and their CDS spreads have narrowed Leasing up the mall adds new “bonds” and incremental cash flow to the portfolio with minimal capital investment The “bonds” represent a diverse group of retailers. and if a tenant defaults.Why is PF GGP a Good Investment? (Cont’d) A mall is like a trust which holds a portfolio of bonds Over the past twelve months.

then a mall REIT is a portfolio of portfolios of bonds On the other hand. which could cause a mall to lose 80% or more of its value If such events were to destroy the value of a mall. Simon or Westfield) is analogous to an investor’s portfolio with margin debt. a mall might lose key anchor tenants. but mall portfolios in particular The reason is that B minus and lower malls have potential catastrophic risk. where the failure of a portion of the portfolio can destroy large amounts. if not 100%. of the equity value 28 . a mall REIT primarily financed with unsecured. or be disintermediated by a better located mall. recourse debt (i. For example. the exposure to an investor with non-recourse financing is limited to its equity in the mall because the property can be “sold” to the lender for the mortgage amount If a mall is a portfolio of bonds.The Value of Non-Recourse Debt Non-recourse financing creates material value for all real estate portfolios.e.

each worth $100 and each with a 60% LTV non-recourse mortgage $60 $40 $100 $60 $40 $60 $40 Total Mall Value $300 $60 $60 $60 $40 $40 $40 $100 Leverage 60% $100 - Total Debt $180 29 = Total Equity $120 .Illustrative Example: Non-Recourse Financed Mall Portfolio Imagine a portfolio of three malls.

Onethird of the equity value is lost. and leverage remains the same $0 $60 $40 $60 $40 Total Mall Value $200 $60 $60 $40 $40 Leverage 60% $100 $100 - Total Debt $120 30 = Total Equity $80 .Illustrative Example: Non-Recourse Financed Mall Portfolio (Cont’d) Now assume one of the malls suffers catastrophic risk.

Illustrative Example: Recourse Financed Mall Portfolio Imagine the same portfolio of malls financed with unsecured. recourse debt $100 $180 $100 $120 $120 $180 Leverage 60% $100 Total Mall Value $300 - Total Debt $180 31 = Total Equity $120 .

equity value is nearly wiped out. the destruction of value would likely be even more severe $0 $100 $180 $100 Total Mall Value $200 Total Debt $180 32 $180 $20 Leverage 90% - = Total Equity $20 . Given the covenants associated with recourse debt.Illustrative Example: Recourse Financed Mall Portfolio (Cont’d) If one of the malls dies.

(4) Mall and freestanding gross leasable area (excludes anchors). South Street Seaport. Source for tenant sales. Redlands Mall.3% Occup.PF GGP Operating Metrics The disposition of Special Consideration Properties (SCPs) and GGO assets materially enhances PF GGP’s operating metrics TTM Tenant Sales PSF $411 250 325 $424 GLA (4) GGP (1) Less: SCPs / Highland (2) Less: GGO Malls (3) PF GGP 65.5% 82. occupancy and occupancy cost: Pershing Square estimates.5% 91. 90. Riverwalk Marketplace.5% 82. Park West and Cottonwood Mall.0 59.3 3. Landmark Mall. (2) See appendix for details. (3) Includes Victoria Ward. Units in millions of sq ft. 33 .0% 17.3% (1) Source: GGP Q1'10 supplement pgs. 31-32.9 2.6% 18. See Exhibit E docket #4874 for full list of GGO assets. Rio West.0% 14.4 Occup. Cost 14.

(7) Assumed to be issued as part of PF GGP's emergence. (5) On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40). (2) As of 9/30/09. (4) Paid down Apr-10. the last time GGP published its interest coverage ratio in its operating supplement.0x 34 .373) (400) 1.506 1.PF GGP Debt PF GGP’s leverage will be meaningfully reduced upon emergence PF GGP Debt Buildup ($ in mms) Total GGP Debt (3/31/10) (1) Interest coverage ratio (2) Less: SCPs debt (3) Less: GGO debt (3) Less: Stonestown mezz (4) Less: Highland (5) Less: TopCo unsecured debt (6) Less: DIP (6) Plus: New Debt (7) PF GGP Debt (3/31/10) Less: Additional amortization through 9/30/10e (3) PF GGP Debt (9/30/10e) Interest coverage ratio (3) (1) Source: Q1'10 supplement pg 2.478 2. $27.2x (948) (506) (57) (32) (6.500 $20. (6) Assumed to be paid down as part of PF GGP's emergence.691 (212) $20. See appendix for details. (3) See appendix for details.

(4) Represents drag to GGP NOI from PF GGP development projects.290 (1) Source: GGP operating supplements. Source: GGP Q4'09 operating supplement pg 7. 35 . Assumes 2009 and LTM are equal. This reflects "catch-up" R&M spend. Source: GGP Q4'09 operating supplement pg 7. (3) One-time additional property upkeep costs. Assumes 2009 and LTM are equal. These are non-recurring items. (5) Represents LTM cash NOI attributable to the SCP malls and GGO assets that are assumed to not be included in PF GGP cash NOI post-emergence. See appendix for detail. Excludes MPC NOI.360 25 16 5 (115) $2.PF GGP Cash NOI Despite the dispositions of SCPs and GGO assets. Source: Pershing Square estimate. PF GGP’s net operating income will be relatively unaffected PF GGP Adj Cash NOI Buildup ($ in mms) LTM GGP Cash NOI (1) Plus: Bankruptcy claims revenue/expense impact (2) Plus: One-time R&M spend (3) Plus: Real estate tax expense from dvlpmt projects (4) Less: SCPs / GGO / Highland LTM cash NOI (5) LTM PF GGP Adj Cash NOI $2. Source: Pershing Square estimate. (2) One-time revenue/expense impacts arising due to the bankruptcy.

076 $17.965 324 440 190 65 1.725 324 440 190 65 1.219 $312 10.051 $10.019 36 1. 36 .00 50 $799 15.090 $16.065 $13.75 strike.843 324 440 190 65 1.00 $15.00 31 $399 11.069 $14.019 53 1. Assumes 20 vol.00 $12.073 $16. and 7-yr duration.00 324 440 190 65 1.019 41 1.00 41 $590 13.019 31 1.019 57 1. (2) Assumes full clawback of 190mm Pershing Square and Fairholme shares.056 $11.50 strike.060 $12. (5) Black-Scholes warrant valuation. except per share data) $10. Source: Q1'10 operating supplement. PF GGP would emerge with a ~$16bn market cap (units in mms.506 Illustrative PF GGP FDSO @ Various Share Prices $11.00 Current FDSO (1) BPF minimum commitment Clawback shares (2) Liquidity Equity Issuances (3) PF GGP FDSO (excl warrants) Warrants (share equivalent) (4) PF GGP FDSO (incl warrants) PF GGP Market Cap Memo: Warrant Translation Fair Value of warrants (5) Divided by: Share Price Warrants (share equivalent) 324 440 190 65 1. 60mm warrants at $10.00 57 (1) Includes OP Units and options.00 45 $693 14.019 50 1. pg 27. (4) Represents the share-equivalent amount of 120mm warrants at various PF GGP share prices.612 324 440 190 65 1.00 $13.00 $14.00 36 $492 12. (3) Assumes GGP sells 65mm Liquidity Equity Issuances shares.PF GGP Shares Outstanding / Market Cap At $15 per share.019 45 1.00 324 440 190 65 1.00 53 $908 16. 60mm warrants at $10.

456 12.016 13.8% 1.PF GGP Would Be the Second Largest U.S.0% 4. REIT Top 5 REITs in the IYR REIT Index by Rank (as of 5/28/10) REIT 1. 37 .782 At $15 per share.4% 4.7% 0. Macerich % of IYR 8. Public Storage 5. Boston Properties 15. Equity Residential 4.9% Mkt Cap $29.987 16. Vornado 3.3% 3.341 5.0% 5. Simon Property Group PF GGP 2. PF GGP would be the second largest REIT in the index ________________________________________________ Source: Market cap data from Green Street Real Estate Securities Monthly (as of 6/1/10).297 15.090 15.

PF GGP Will Be A “Must-Own” REIT Stock Shareholder overlap among public REITs is extremely high due to a large. dedicated REIT investor universe Dedicated REIT investors closely track REIT indexes As a result of GGP’s bankruptcy. This will make it a “must-own” equity 38 . it was removed from REIT indexes When PF GGP emerges from bankruptcy. it will once again be added to the real estate indexes.

826 65% 74 $2.961 52% 90 $6.068 977 476 555 341 519 332 734 311 225 251 312 150 285 149 254 168 139 150 102 134 14 106 118 142 Public Storage Shares Value 11 11 8 6 6 5 2 3 3 2 3 3 3 2 1 2 2 2 2 2 2 1 2 1 1 $1. In order to obtain similar ownership of PF GGP. the same 25 holders own ~60% of the top five REITs.464 1.255 60% 182 $8.209 66% 109 $8. On average.668 1. 39 .010 64% 88 $7.073 975 444 579 524 489 567 392 358 280 343 393 99 211 192 98 154 189 152 108 152 66 133 159 126 Equity Residential Shares Value 24 22 11 13 8 12 8 17 7 5 6 7 3 6 3 6 4 3 3 2 3 0 2 3 3 $1. they must buy 60% or $9bn of PF GGP (units in millions) Top 25 Holders The Vanguard Group BlackRock Cohen & Steers State Street Global Advisors Fidelity Investments Stichting Pensioenfonds ING Investment Mgmt Morgan Stanley Inv Mgmt Invesco PGGM LaSalle Investment Mgmt Old Mutual Asset Mgmt RREEF AEW Capital Mgmt T.971 57% 4 $57 0% Source: Capital IQ as of 5/21/10.034 969 680 559 505 490 149 288 316 194 311 285 317 212 132 185 180 160 146 159 168 118 148 130 126 Boston Properties Shares Value 12 11 4 6 4 5 2 4 4 3 3 3 4 3 2 3 2 2 2 2 2 2 2 2 2 $922 833 336 481 286 400 145 299 290 213 213 200 335 236 155 231 125 171 129 151 116 178 127 137 117 Shares 9 9 6 3 6 2 12 1 4 3 1 3 2 3 2 2 2 0 1 1 1 0 1 0 1 Macerich Value $364 359 229 130 224 68 496 30 163 128 21 115 96 108 97 76 64 3 31 27 40 3 51 16 31 Shares 0 0 0 0 0 1 2 0 0 0 - GGP Value 0 2 5 0 0 17 24 0 6 3 - Top 25 Holders % of Mkt Cap (1) ________________________________________________ 193 $16. yet they currently own less than 1% of GGP. which tend to rely solely on basic shares outstanding. (1) % of market cap is based on Capital IQ market cap estimates.117 965 789 761 660 657 852 529 346 547 416 387 266 325 310 291 328 265 436 250 241 218 Vornado Shares Value 14 13 6 8 7 6 7 5 5 4 5 5 1 3 3 1 2 2 2 1 2 1 2 2 2 $1. Rowe Price Group Security Capital Research Frank Russell STB Asset Mgmt Northern Trust Principal Global Investors Dimensional Fund Advisors Goldman Sachs Asset Mgmt TIAA-CREF Nikko Asset Mgmt Adelante Capital Mgmt Simon Shares Value 25 20 17 13 11 9 9 8 8 10 6 4 7 5 5 3 4 4 3 4 3 5 3 3 3 $2. % of GGP market cap is based on PF GGP market cap at $15 per share.Simon Crossholdings Analysis There is enormous shareholder overlap among the top five REITs in the IYR.120 1.

Assumes GGP sells full amount of 65mm Liquidity Equity Issuances shares. PF GGP’s equity is already fully committed pre-offering. PF GGO can sell up to 255 million shares at prices of $10.50 or greater (1) ________________________________________________ (1) Assumes full clawback of 190mm Pershing Square and Fairholme shares. 40 . PF GGP can achieve a high value execution Under the terms of the Brookfield. rather than be a forced seller. and Pershing Square agreement. As a result.Not Your Typical Public Offering PF GGP’s emergence from bankruptcy will be tantamount to an initial public offering (IPO) Unlike traditional IPOs where buyers have all the leverage. Fairholme.

00 $3.090 60. 41 .PF GGP IPO Supply / Demand Dynamic Demand ($ and shares in millions) Anticipated Demand from the Dedicated REIT Universe PF GGP Market Cap (@$15) Top 25 REIT Investors average % of Mkt Cap (1) Anticipated Demand $ 16.0% $9.825 (1) Based on Simon Crossholdings Analysis. (3) Assumes GGP sells 65mm Liquidity Equity Issuances shares.654 Supply Anticipated PF GGP IPO Supply Clawback shares (2) Liquidity Equity Issuances (3) PF GGP IPO Share Supply PF GGP share price Anticipated Supply $ 190 65 255 15. (2) Assumes full clawback of 190mm Pershing Square and Fairholme shares.

(9) PF GGP development assets including Christiana Mall. Excess Sources will likely be higher than presented.686) $28. such as accrued interest and Permitted Claims (i.678) (1. Excess Sources are treated as cash and offset Target Net Debt. Source for LTM fee income: GGP operating supplements. except per share data) Illustrative PF GGP Cap Rate @ Various Share Prices $11.00 $16. (5) See Excess Sources appendix page for details.678) 1.290 7.971 $22.984) 1.6% cap rate.012 $32. (10) 9/30/10e PF GGP debt less $500mm of Proportionally Consolidated Unrestricted Cash. (3) Debt associated with properties going to GGO needs to be removed from Target Net Debt to arrive at an estimate of PF GGP debt.00 1. See appendix for details.00 $9.00 $13.290 7. (2) SCP debt needs to be removed from Target Net Debt to arrive at an estimate of PF GGP debt upon emergence (assumed to be 9/30/10e).686) (1.843 $14.345 (1. Applies 7.882) (1.065 $13.971 (948) (948) (948) (948) (948) (948) (948) (506) (506) (506) (506) (506) (506) (506) (32) (32) (32) (32) (32) (32) (32) (15) (15) (15) (15) (15) (15) (15) (1. Target Net Debt includes the Company's estimate of bankruptcy "exit costs.Illustrative PF GGP Valuation at Various Share Prices At $15 per share.) GGP's share of this debt as of 3/31/10 was $95.345 1. In addition.2mm.00 1.00 $15.00 $12.069 $14.859 (151) (183) $28.345 1.686) (1.5% 64.4% 2.00 $10. and preferred stock.7% 2.8% 58. Debt estimate is derived from GGP's public filings and may not exactly reconcile to GGP's 9/30/10e estimate of such debt.00 1.933) (1.780) (1.290 7.00 1. See appendix for details.076 $17. debt associated with GGP's international subsidiaries.957 $31. (7) See appendix for details.971 $22.971 $22.2% 62.00 1. (6) Includes GGP's other liabilities that are not accounted for as part of Target Net Debt.212 $35.074 $33.00 1.7% 66. the KEIP). 42 (4) Brazil debt included in Target Net Debt is $110.525 2.3% 2.9% (1) Target Net Debt as of the original Cornerstone Investment Agreement. Bankruptcy "exit costs" are excluded from uses in the Excess Sources calculation because they are included as Permitted Claims in Target Net Debt.729) (1.00 1.4% 2. to the extent GGO's IPO Participation is greater than permitted liabilities.345 1.00 1.290 7.290 6.807 $33.623 $30. See appendix for details. See appendix for details.686) $29.831) (1.051 $10. Source: Q1'10 supplement pg 2." Furthermore. St Louis Galleria.290 6.965 $15.6% 2.0% 69.045 $9.060 $12. Target Net Debt includes non-debt liabilities.408 $22.971 $22. Source: Q1'10 operating supplement.4mm (Source: Cornerstone Investment Agreement. This assumes GGP "hands back the keys" on SCP malls. Target Net Debt is an estimate of GGP's net debt as of 9/30/10e.090 $16.345 1.678 $31. Source: pg 75 of docket #4874.030 2.056 $11.345 (1.971 $22.5x multiple to implied LTM EBIT.686) (1.287 $36. .4% 54.740 $32.2% Price PF GGP FDSO (incl warrants) Market Cap Target Net Debt (1) Less: SCPs debt (2) Less: GGO debt (3) Less: Highland debt Less: Brazil adjustment (4) Less: Excess Sources (5) Plus: Other liabilities (6) Less: Other assets (7) TEV Less: GGMI (8) Less: Development assets (9) Adj TEV PF GGP LTM Adj Cash NOI Cap Rate Net Debt / TEV (10) $22.290 6.878 $34.725 $13.290 8. among other things.345 1.971 $22.612 $12.6% 56. PF GGP would trade at a 6. GGP's headquarters leasehold. This is a Pershing Square assumption as the outcome is TBD.953 $36. the Bridgelands MPC and GGP's pro rata share of the Woodlands MPC debt. Fashion Place. (8) Applies 25% EBIT margin assumption to LTM management income of $80mm.364 (151) (151) (151) (151) (151) (151) (151) (183) (183) (183) (183) (183) (183) (183) $29.00 $14. in line with comparable mall REITs (units in mms.506 $11. GGO debt includes debt associated with Victoria Ward.686) (1. Target Net Debt includes PF GGP and GGO liabilities. Therefore. Target Net Debt includes the following: $1.5bn of New Debt.141 $34. Excludes goodwill.971 (948) (506) (32) (15) (1.073 $16.3% 2.686) (1.e.00 $10.686) (1.219 Memo: $9. Source: pg 17 of Q1'10 10-Q.345 1.0% 60.

0% implied cap rate net of GGO(1) ________________________________________________ Source: “Why the Sad Face Mall Sector?” Credit Suisse equity research (4/26/10). PF GGP trades at an 8. 43 .GGP Currently Trades at a Meaningful Cap Rate Spread to Simon At a $14 share price. (1) See previous page for details.

(3) Source: Westfield financial results.21% 5. Adjusted to reflect refinancing and extension of Vintage Faire Mall loan. . Assumes 100% of mortgage debt is non-recourse. especially if the debt is high-quality. PF GGP Leverage Ratio represents Net Debt / Adj TEV at $15 per share. is more of an asset than a liability Pro Forma (1) (2) (3) (4) Interest Rate Debt duration Non-Recourse Leverage Ratio (5) 5. 44 (5) Source: Green Street Real Estate Securities Monthly (as of 6/1/10). some of this debt is recourse but disclosure is unavailable. Assumes 100% of mortgage debt is non-recourse.PF GGP Will Have An Industry Leading Balance Sheet Although PF GGP will have slightly more leverage than its peers on an absolute basis. We believe a reasonable amount of non-recourse leverage. 2010 paydown of $690mm line of credit and April 7. Most likely. Adjusted to reflect April 25. (2) Source: Simon operating supplements.0 yrs < 20% 49% 5.2 yrs < 89% 53% (1) See appendix for PF GGP balance sheet details. 2010 paydown of $24mm Carmel Plaza loan. Most likely.2 yrs < 52% 50% NA 7. some of this debt is recourse but disclosure is unavailable. Data as of Q4'09 if Q1'10 data is unavailable.49% 3. it will have a long-dated. (4) Source: Macerich operating supplements. laddered debt maturity profile.3 yrs 78% 57% 5.50% 5.

See appendix for details on Simon's occupancy cost.3% 14. See PF GGP Operating Metrics for PF GGP occupancy cost details.S. Cost (4) $424 91. (4) Source for Macerich / Westfield: "U.1% 6.2% 3. Source: Westfield financial results. PF GGP cap rate based on implied share price of $9 net of GGO.6% 6.PF GGP Will Have Industry Leading Operating Metrics PF GGP will have the added benefit of near-term growth as it refocuses on its operations post-emergence and corrects for the underperformance that resulted from its bankruptcy Pro Forma (1) (2) (3) Sales per Sq Ft Occupancy Occup.0% Tenants Sales Growth (Q1’10) Cap Rate (5) (1) Simon malls only.2% 14.5% 8. (3) Source: Macerich operating supplements.S.0% $416 91.0% 5. (2) Based on Westfield's U. Includes regional mall portfolio.6% $400 92. and malls included in Other Properties (excl Highland Mall).4% 7.1% 17. Data as of Q4'09 if unavailable in Q1'10 financial results.3% 6. Mall REITs May '10 Update" Green Street 5/19/10. See appendix for details on Simon's cap rate.0% 15. Source: Simon operating supplements and 10-K. mall portfolio only.0% 45 $420 91. . (5) Source for Macerich / Westfield: Green Street Real Estate Securities Monthly (as of 6/1/10).3% 7. the Mills. See later pages for Simon Malls operating metrics details. Mills regional malls.

$540 98.1% 6.0% 5.4% 16. (2) See previous page for details. which went public in January.1% 17.3% 6.0% $416 91.6% 6.5% ~11% 46 $420 91.0% 13. a Brazilian mall developer.0% . Pershing Square is the second largest owner with roughly 14% of the total shares outstanding (1) (2) (2) (2) Sales per Sq Ft Occupancy Occup. Cost Tenants Sales Growth (Q1’10) Cap Rate (1) Source: Aliansce Q1'10 financial results and Pershing Square estimates.2% 3.4% 7.6% $400 92.Aliansce GGP owns 35% of Aliansce.2% 14.0% 15.

47 . Simon consolidated its Premium Outlets segment into its Regional Malls segment.A Word On Simon’s Reported Operating Metrics Beginning in Q1’10. This caused its newly reported Regional Malls segment’s occupancy and sales per square foot to appear to increase meaningfully ________________________________________________ Source: Simon operating supplements.

these assets should be included in Simon’s Regional Malls portfolio Simon has also transferred certain of its underperforming malls into its Other Properties segment For example. but showed up in its Other Properties segment as of 12/31/09.A Word On Simon’s Reported Operating Metrics (Cont’d) We note that Simon’s Regional Mall portfolio excludes several regional malls in The Mills and Mills Regional Malls segments In our view. a joint venture between Simon and GGP that was 51% occupied as of 12/31/09. This further served to increase Simon’s reported Regional Mall occupancy and sales per square foot as of Q1’10 48 . Highland Mall. was recently transferred back to the lender Highland Mall was included in Simon’s Regional Mall portfolio as of 12/31/08.

Source: Pershing Square estimates. 49 .1% $419 89.0% $250 0. was trading at a higher cap rate than Simon* * Tanger traded at a 6.6 30.6% $440 60.5% $372 20.3 91.7% $430 89.4% $369 20.6 30.7 30.9% $442 59.9% $369 20.9 Q4'09 92.4% $410 8. (3) Includes Mall at the Source.8% $416 89.8% $455 59. Tanger Factory Outlet Centers. (2) Q1'10 data not available in Simon filings. Source: Green Street Real Estate Securities Monthly (as of 6/1/10). but includes its Mills malls and the underperforming malls included in its Other Properties segment (GLA in millions) Q4'08 Regional Malls Occupancy (2) Sales per Sq Ft (2) Owned GLA (excl anchors) The Mills Occupancy Sales per Sq Ft Owned GLA (excl anchors) Mills Regional Malls Occupancy Sales per Sq Ft Owned GLA (excl anchors) 92.4% $397 8.0% $250 0.1 93.3 87.6 Q1'09 Simon Property Group (1) Q2'09 Q3'09 90.7 Q1'10 91.9% $388 8.0% $250 0. which excludes its outlets.7% $373 20.1 93.8 Simon Malls Occupancy Sales per Sq Ft Owned GLA (excl anchors) 91.0% Sales per Sq Ft (4) $250 Owned GLA (excl anchors) 0.8 90.8 91.2 87.3 (1) Source: Simon operating supplements.3 As of 6/1/10.6 89. Other Properties Malls (excl Highland Mall) (3) Occupancy 30.9% $369 20.7% $412 89.8 90.6 30.8% $441 89.1% $433 60.A Word On Simon’s Reported Operating Metrics (Cont’d) We believe the most appropriate way to compare Simon and PF GGP is to look at Simon’s true regional mall portfolio.3% $372 20.9% implied cap rate as of 6/1/10.2 88.8 90.6 94.4% $418 8. (4) Data not available.6 30.3 87.4% $410 8.4% $470 59.8 91.2 89. Source: Pershing Square estimates. the best comp for Simon’s Premium Outlets segment. Nanuet Mall and Palm Beach Mall (at share).0% $250 0.3 92.0% $420 89.0% $250 0.8 89.7 90.4% $438 60.2 88.3% $380 8.

GGO .

Wacker . We believe GGO will have the balance sheet and the intellectual and operating capital to take full advantage of these opportunities General Growth Opportunities (Select Assets) MPC Summerlin Columbia Woodlands Bridgeland Development Victoria Ward South St.What is General Growth Opportunities? GGO’s portfolio features some of the best real estate development assets in the country. Seaport Summerlin Center Landmark Mall Park West 51 Non-Income/Other Fashion Show Princeton Land 110 N.

020 $ $ 16. up to the value of the ~$300mm deferred tax liabilities and the Hughes claim.00 1.00 1.224 . GGO will retain 80% of every dollar PF GGP raises above $10 per share.275 GGO % Share 80% $ 80% $ GGO $ Share 760 260 1.00 816 $ $ 15.GGO IPO Participation Under the terms of the fully executed Cornerstone Investment Agreement.020 Sensitivity of GGO IPO Participation to GGP Offer Price GGP Offer Price GGO IPO Participation (1) Assume 65mm Shares 52 $ $ 10.00 408 $ $ 13.00 612 $ $ 14.00 204 $ $ 12. This IPO Participation allows GGO to benefit from a successful PF GGP capital raise GGO IPO Participation at a $15/share GGP Offering ($ in millions.00 - $ $ 11.850 $ 950 975 325 65 255 $ 3. except per share data) Clawback Shares Liquidity Shares (1) GGP Shares Total Proceeds Issued Proceeds above $10 190 $ 2.825 $ 1.

We believe that cash from a PF GGP capital raise even at prices meaningfully lower than $15 per share is more than sufficient to satisfy these claims Permitted Use of IPO Participation ($ in millions. "Permitted Claims".GGO IPO Participation (Cont.) GGO’s use of proceeds from the PF GGP share offering is limited to satisfying permitted liabilities. substantially more than enough to satisfy these permitted liabilities (1) Projected bankrupcty exit costs. except per share data) Promissory Note (1) Deferred Tax Liabilities (2) Hughes Heirs' Claim Permitted Liabilities $ $ 304 X $304 + X The face value of the note is equal to overruns above a conservative projection of bankruptcy exit costs At $15 per share. are $650mm per Pershing Square assumptions (2) Source: Cornerstone Investment Agreement 53 . the GGO IPO Participation will be ~$1bn.

Hughes Claim GGP can settle the claim in bankruptcy at an estimation hearing Settlement is based on a 12/31/09 valuation of Summerlin MPC We expect the company to settle this claim at a reasonable number Post settlement. GGO will have 100% ownership of Summerlin (from 50%) 54 .

80mm warrants at $5. Source: Q1'10 operating supplement.5mm share backstop consideration. 55 324 53 377 23 400 .00 per share strengthens GGO’s balance sheet Share Count (millions): Current GGO FDSO (1) Rights Offering Backstop Shares (2) PF GGO FDSO (excl warrants) Warrants (share equivalent) (3) GGO FDSO (incl warrants) (1) Includes OP Units and options. Includes 2. Assumes 20 vol.00 strike. pg 27.GGO Share Count A $250 million share backstop at $5. (3) Black-Scholes warrant valuation. (2) Assumes only the backstop rights are exercised.

except per share data) Price Shares (mm) Equity Value Non-Recourse. net of GGO IPO Participation Cash (2) Net Debt Enterprise Value (1) See Appendix (2) Excludes property level cash balances because data is unavailable 56 $ 5.256 . Property Specific Debt (1) Permitted Liabilities. 100% of GGO’s debt is property level and non-recourse.) GGO will have a strong balance sheet.00 400 2. $250mm of balance sheet cash ensures GGO has ample liquidity to fund value creation opportunities GGO Capital Structure ($ in millions.GGO Capital Structure (Cont.000 506 (250) 256 $ 2.

MPC Portfolio MPC Portfolio Bridgeland Maryland. TX 57 . TX Collection of properties between DC and Baltimore 22.500 acre community west of Las Vegas Successful JV MPC near Houston.400 acres outside of Houston. MPCs Summerlin Woodlands 11.

000 square feet of industrial uses 14 acres of open space.300 residential units. parks and public facilities 58 . shops. restaurants and entertainment 4 million square feet of offices and other commercial space 700. many of them in towers aligned to preserve mountain and ocean views 5 million square feet of retail shopping.Development Asset: Victoria Ward GGP recently received zoning approval to transform 60 acres of land in the heart of Honolulu into a vibrant and diverse neighborhood of residences. entertainment and offices The plan clears a path for GGP to bring to the oceanfront neighborhood as many as: 4.

59 .43 acres of land sold for $26mm ($18mm / acre) here in June-07 (1) ________________________________________________ (1) See appendix for details.Development Asset: Victoria Ward (Cont’d) 1.

Development Asset: South St. Seaport Highlights of the development include: 400.000 square feet of retail space A 286 room hotel and a smaller 163 room boutique 103 residential units Nearly 5 acres of open space 60 . Seaport Before the market turned. GGP was exploring a billion dollar redevelopment of South St.

Seaport (Cont’d) 61 .Development Asset: South St.

Hotel Interactive. The Palazzo. Glenn Haussman. nearby North Vegas Strip land sold for $34mm/acre! Fashion Show’s location is within walking distance of 75% of the city’s more than 150.000 hotel rooms Located adjacent to Fashion Show is The Venetian. 5/25/2007 62 .Non-Income Producing Asset: Fashion Show Air Rights GGO owns the air rights above the Fashion Show Mall in Las Vegas This 48 acre. three-story property is located across from the Wynn and Encore. and Sands Expo Center – the largest hotel convention complex in the world !Source: "Vegas Land Values Soaring Sky High". the most lucrative part of the Las Vegas Strip In 2007.

The North Vegas Strip Encore Fashion Show Wynn Palazzo Venetian Caesars 63 .

Conclusion .

GGP Trades at a Meaningful Discount to Intrinsic Value At a $14 GGP share price. you are buying GGO for negative $1 GGP Valuation PF GGP GGO Combined GGP Share Price Implied Return at Emergence by Year-end ~$15 ~$5 ~$20 ~$14 43% 65 .

Over the years. For my best investment idea… . people have accused me of talking my book.

Buy Christine Richard’s Book. and Tell Your Friends 67 .

And one more thing… We have accumulated ~150mm shares of Citigroup during the past several weeks… 68 .

Appendix .

8 5. except per unit data) GLA (5) Consolidated Properties (1) Eagle Ridge Mall Oviedo Marketplace Grand Traverse Mall Country Hills Plaza Moreno Valley Mall Lakeview Square Northgate Mall Bay City Mall Mall St.3 0.3 0. Source for debt balance / interest rate / duration: 5/12/10 8-K.42% 6.1 0.4 0. 70 (3) On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40).2 3. (5) Mall and freestanding gross leasable area (excludes anchor space).30% 6.2 0. Data presented pro rata (i.47% 5.3 3.30% 4. (2) Source for malls: Q1 10-Q pg.38% 4. Source for debt detail: Simon Q1'10 supplement.8 3.12% 5.41% 5.2 0.e.95% 5.5 3. 21-22.02% 6.2 3.3 0. Vincent Southland Center Chapel Hills Mall Chico Mall Piedmont Mall Subtotal Unconsolidated Properties (2) Silver City Montclair Subtotal SCPs Highland Mall (3) SCPs / Highland 0.74% 5.5 3.2 0.4 4.5 1.3 0.3 1. Note: Occupancy costs are higher at underperforming malls because sales are low but rents are locked in.57% 5.97% 5.5% 18.04% 4.04% 5.2 3. docket #3660.7 1.SCPs / Highland Mall (units in millions.2 1. (4) Source: Pershing Square estimates.9 6.8 6.3 0.2 0.3 0.96% 5. Source for occupancy: Simon 10-K. 50% of the GLA is shown).81% 5.8 3.1% 82.4 3. Source for subtotal debt balance (as of 3/31/10): Q1 10-Q. pg 22.8 6.9 Balance Sheet Data Interest Duration Debt Rate (yrs) $47 51 84 13 86 41 44 24 49 107 114 56 33 $750 66 134 $198 $948 32 $980 5. if GGP owns 50%.0% Operating Metrics (4) Sales Occup PSF Occup Cost (1) Source: Exhibit C.88% 5. Source for debt balance / interest rate / duration: Q3'08 supplement.83% 5. .88% 5.2 0.8 3.3 0.98% 5.4 3.7 0.8 4.3 3.3 0.6 $250 51. Source for duration: Q3'08 operating supplement.

GGP Debt Detail – GGO ($ in 000s) GGO Debt Victoria Ward Cmbd 110 N. Note: Excludes debt which may arise to the extent there is a GGO Promissory Note.812 216.987 Debt Balance as of: 3/31/10 9/30/08 12/31/09 9/30/08 Source 5/12/10 8-K Q3'08 supp 10-K Q3'08 supp Note: Most recent debt balance reported assumed to be 3/31/10 balance.943 29. We believe the amount of this note will be $0. Note: All GGO debt sits at the property-level and is non-recourse. 71 .889 45.343 $505. Wacker Bridgelands MPC Woodlands MPC GGO Debt Debt Balance $213. True balance is actually less as amortization has occurred since most recent reported debt balance.

GGP Debt Detail – Debtor Entities
($ in 000s) Debtor Entities: 10 Columbia Corporate Center 10000 Chrlston/ 9901/21 Cvngton 10000 Covington Cross 10190 Covington Cross 1160/80 Town Center Drive 1201/41 Town Center Drive 1251/81 Town Center Drive 1551 Hillshire Drive 1635 Village Center Circle 1645 Village Center Circle 20 Columbia Corporate Center 30 Columbia Corporate Center 40 Columbia Corporate Center 50 Columbia Corporate Center 60 Columbia Corporate Center 9950/80 Covington Cross Ala-Moana - Total Animas Valley Cmbd Apache Cmbd Arizona Center Cmbd Augusta Mall Cmbd Austin Bluffs Plaza Bay City Mall Cmbd Bayshore Cmbd Beachwood Place Cmbd Bellis Fair Cmbd Birchwood Cmbd Boise Towne Plaza Boise Towne Square Brass Mill Cmbd Burlington Town Center Cmbd Cache Valley Cmbd Capital Cmbd Chapel Hills Cmbd Chico Mall Cmbd Chula Vista Center Cmbd Collin Creek Combine Colony Square Cmbd Columbia Center-C.A. Building Columbia Center-Exhibit Bldg Columbia Mall Cmbd Columbiana Centre Cmbd Coronado Center Cmbd Debt 3/31/10 21,772 8,320 1,482,189 35,054 174,422 2,219 23,745 30,473 240,164 59,826 44,308 10,704 69,489 120,142 31,406 28,043 19,975 113,785 55,913 65,884 25,239 89,807 105,441 166,028 Debtor Entities: Corporate Pointe #2 Corporate Pointe #3 Country Hill Plaza Crossing Business Center #6 Crossing Business Center #7 Crossroads (MN) Cmbd Deerbrook Mall Division Crossing Eagle Ridge Cmbd Eastridge (WY) Cmbd Eastridge Mall Cmbd Eden Prarie Cmbd Faneuil Hall Marketplace Cmbd Fashion Place Cmbd Fashion Show Cmbd Foothills Mall Cmbd Fort Union Four Seasons Cmbd Fox River Cmbd Gateway Cmbd Gateway Crossing Shopping Ctr Gateway Overlook Glenbrook Square Cmbd Grand Teton Cmbd Grand Traverse Cmbd Greenwood Cmbd Halsey Crossing Harborplace Cmbd Hulen Mall Cmbd Jordan Town Creek Cmbd Knollwood Mall Cmbd Lakeside Mall Cmbd Lakeview Square Cmbd Lansing Cmbd Lincolnshire Commons Lynnhaven Cmbd Mall at Sierra Vista Cmbd Mall of Louisiana Mall of Louisiana Power Center Mall of the Bluffs Cmbd Mall St. Mathews Cmbd Mall St. Vincent Cmbd Market Place Cmbd Debt 3/31/10 4,458 4,458 13,352 82,754 71,202 5,114 46,942 38,497 169,620 78,311 92,788 142,255 645,918 50,758 2,670 97,950 194,400 39,148 14,931 54,877 174,262 48,795 83,919 43,952 2,503 49,884 111,085 182,227 39,332 176,810 40,771 23,081 27,939 233,105 23,556 235,174 35,951 142,008 49,000 105,773 Debtor Entities: Mayfair Cmbd (offices included) Mondawmin Mall Cmbd Moreno Valley Mall Cmbd Neighborhood Stores Newgate Mall Cmbd Newpark Mall North Plains Mall Cmbd North Point Mall Cmbd North Star Mall North Town Cmbd Northgate Cmbd Northridge Fashion Ctr Cmbd Oakwood Center Cmbd Oakwood Cmbd Oglethorpe Cmbd Orem Plaza Center Street Orem Plaza State Street Oviedo Marketplace Cmbd Owings Mills Oxmoor Cmbd Park City Center Cmbd Park Place Cmbd Peachtree Cmbd Pecanland Mall Piedmont Cmbd Pierre Bossier Cmbd Pine Ridge Cmbd Pioneer Place Cmbd Prince Kuhio Plaza Providence Place Cmbd Red Cliffs Mall Cmbd Regency Square Cmbd Ridgedale Center Cmbd Ridgley Building River Hills Cmbd River Pointe Plaza Riverside Plaza Rivertown Cmbd Rogue Valley Cmbd Saint Louis Galleria Salem Center Cmbd Sikes Senter Cmbd Silver Lake Cmbd Debt 3/31/10 274,932 84,689 86,432 40,207 67,143 10,656 212,567 228,174 114,976 44,440 124,232 95,000 75,772 138,994 2,386 1,477 51,066 53,281 56,128 146,522 173,397 88,121 56,159 33,478 40,382 25,956 156,764 36,885 381,691 24,669 91,588 175,127 79,831 3,696 5,290 115,948 25,966 233,390 41,728 60,395 18,228 Debtor Entities: Sooner Cmbd Southlake Cmbd Southland Center Cmbd Southland Cmbd Southwest Plaza Cmbd Spring Hill Cmbd Staten Island Mall Steeplegate Mall Cmbd Stonestown Mezz Stonestown Notes A/B The Boulevard Cmbd The Crossroads (MI) Cmbd The Gallery at Harborplace Cmbd The Maine Mall Cmbd The Palazzo The Shoppes at Fallen Timbers Cmbd The Woodland Mall Three Rivers Cmbd Towneast Cmbd TRS-Fallbrook Cmbd TRS-Grand Canal Shoppes Cmbd Tucson Mall Tysons Galleria Cmbd University Crossing Valley Hills Cmbd Valley Plaza Cmbd Victoria Ward Center Victoria Ward Village/Gateway/Indust Victoria Ward Warehouse/Plaza Village of Cross Keys Cmbd Visalia Cmbd Vista Commons Vista Ridge Mall Cmbd Washington Park Mall Cmbd West Valley Cmbd Westwood Mall White Marsh Mall Cmbd White Mountain Cmbd Willowbrook Cmbd Woodbridge Center Cmbd Woodlands Village Debtor Entity Debt Debt 3/31/10 59,873 99,799 106,940 79,325 96,187 68,088 278,672 76,505 57,400 215,600 105,345 39,074 78,512 212,597 249,623 42,401 239,268 21,132 102,775 84,820 386,487 118,674 254,194 11,147 55,775 93,129 57,175 88,214 68,500 10,257 40,253 78,869 11,893 54,543 24,117 186,800 10,656 155,974 203,884 6,758 $14,712,876
(1) (1) (1)

(1)

(2)

(1)

(1)

(1)

(1)

(1)

(1)

(1) (1)

(1)

Source: GGP 5/12/10 8-K. Note: Entities with no debt will be unencumbered upon emergence. (1) Represents an SCP mall. (2) Paid down in April-10.

72

GGP Debt Detail – Non-Debtor Entities
($ in 000s) Non-Debtor Entities: 110 N. Wacker (headquarters) Baybrook Cmbd Bayside Marketplace Cmbd Coastland Center Cmbd Coral Ridge Cmbd Cumberland Cmbd Governor's Square Cmbd Lakeland Square Mall Cmbd Meadows Cmbd Oak View Cmbd Paramus Park Cmbd Pembroke Lakes Mall Cmbd The Mall in Columbia Cmbd The Parks at Arlington Cmbd The Shoppes @ Buckland Hills Cmbd West Oaks Mall 10450 W. Charleston LLC Senate Plaza 70 Columbia Corporate Center Non-Debtor Entity Debt
Note: Most recent debt balance reported assumed to be 3/31/10 balance. True balance is actually less as amortization has occurred since most recent reported debt balance.

Debt Balance $45,943 168,570 84,103 117,006 88,250 103,862 74,368 53,675 101,463 83,292 102,855 126,924 400,000 174,517 161,319 68,301 4,756 12,084 19,676 $1,990,964

Debt Balance as of: 9/30/08 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 12/31/09 9/30/08 9/30/08 9/30/08

Source Q3'08 supp 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K 10-K Q3'08 supp Q3'08 supp Q3'08 supp

73

GGP Debt Detail – Joint Ventures (at share)
($ in 000s) Joint Ventures (at share): Alderwood Mall Cmbd Altamonte Mall Cmbd Arrowhead Towne Center Bridgewater Commons Carolina Place Cmbd Christiana Mall Clackamas Town Center Cmbd First Colony Mall Cmbd Florence Mall Cmbd Galleria Tyler Cmbd Glendale Galleria Cmbd Highland Mall Cmbd Kenwood Towne Centre Cmbd Mizner Park Total Montclair Place Cmbd Natick Mall Cmbd Natick West Northbrook Court Cmbd Oakbrook Center Cmbd Park Meadows Cmbd Perimeter Mall Cmbd Pinnacle Hills Promenade / West Debt Balance $145,783 75,000 25,820 47,754 80,281 56,838 100,000 95,149 68,786 125,000 191,317 31,990 168,095 133,825 175,000 70,000 42,513 103,010 126,000 70,000 Debt Balance as of: 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 3/31/10 9/30/08 3/31/10 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 3/31/10 9/30/08 Source Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Simon Q1'10 supp (1) Q3'08 supp Paid down (2) Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Paid down Q3'08 supp Joint Ventures (at share): Provo Towne Centre Cmbd Quail Springs Mall Riverchase Galleria Cmbd Silver City Galleria Cmbd Spokane Valley Cmbd Stonebriar Centre Cmbd Superstition Springs Center The Oaks Mall Cmbd The Shops at La Cantera Cmbd The Streets at Southpoint Towson Town Center Cmbd Village of Merrick Park Total Water Tower Place Cmbd Westlake Center Cmbd Westroads Mall Cmbd Whalers Village Cmbd Willowbrook Mall Owings Mills-One Corporate Ctr Center Pointe Plaza Lake Mead Blvd & Buffalo Trails Village Center Joint Venture Debt Debt Balance 43,302 37,409 152,500 65,528 41,052 84,405 22,498 52,020 129,402 242,881 44,760 76,034 89,514 68,119 45,518 64,893 46,003 4,119 6,846 2,947 8,073 $3,259,984 Debt Balance as of: 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 9/30/08 Source Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp Q3'08 supp
(3)

(2) (3)

(3) (3)

(3)

Note: Most recent debt balance reported assumed to be 3/31/10 balance. True balance is actually less as amortization has occurred since most recent reported debt balance. (1) On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40). (2) Represents an SCP mall. (3) Represents a Joint Venture mall included in GGP's "Consolidated Debt" disclosure.

74

200 $7.620.000 Source 10-K Q3'08 supp 5/12/10 8-K 5/12/10 8-K Q3'08 supp 5/12/10 8-K 1. 75 . True balance is actually less as amortization has occurred since most recent reported debt balance.904 3/31/10 3/31/10 3/31/10 3/31/10 5/12/10 8-K 5/12/10 8-K 5/12/10 8-K 5/12/10 8-K 3/31/10 5/12/10 8-K Note: Most recent debt balance reported assumed to be 3/31/10 balance.115 93.343 245.221 400.713 57.000 590.987.500 206.500 6.000 2.245.GGP Debt Detail – Other Debt Debt Balance as of: 12/31/09 9/30/08 3/31/10 3/31/10 9/30/08 3/31/10 ($ in 000s) Other Debt Bridgelands MPC Woodlands MPC Homart I Ivanhoe Capital Turkey DIP Unsecured Debt: Exchangeable debt Rouse debt Revolver Senior term loan TopCo Unsecured Debt TRUPS Other Debt Debt Balance $29.372.550.000 1.812 216.

Excludes GGP's share of Brazil debt ($95. Debt Balance $14.876 1.406) $27. and in what amounts.712.GGP Debt Detail – 3/31/10 Reconciliation ($ in 000s) Total GGP Debt Debtor entity debt Non-Debtor entity debt Joint Venture debt Other debt Subtotal Less: Amortization (1) Total GGP Debt (3/31/10) (2) Note: Excludes mark-to-market debt discounts which would make the reported debt balance lower. reported as of 9/30/08.984 7. (1) Represents amortization that has occurred since the most recent reported date of GGP's debt. much of GGP's JV debt. Data for which specific debt has been amortized.322 76 . amortizes each month.620. Aliansce.964 3.728 (78. pg 2.2mm as of 3/31/10).584.506.259. For example.904 27. is unavailable. (2) Source: GGP Q1'10 operating supplement. GGP has no obligations for further contributions to its Brazilian subsidiary.990.

0x (1) Source: Q1'10 supplement pg 2.373) (400) 1. See appendix for details.PF GGP Debt Detail PF GGP Debt Buildup ($ in mms) Total GGP Debt (3/31/10) (1) Interest coverage ratio (2) Less: SCPs debt (3) Less: GGO debt (3) Less: Stonestown mezz (4) Less: Highland (5) Less: TopCo unsecured debt (6) Less: DIP (6) Plus: New Debt (7) PF GGP Debt (3/31/10) Less: Additional amortization through 9/30/10e (3) PF GGP Debt (9/30/10e) Interest coverage ratio (3) $27. (3) See appendix for details.506 1.500 $20. (2) As of 9/30/09.2x (948) (506) (57) (32) (6. (4) Paid down Apr-10. (6) Assumed to be paid down as part of PF GGP's emergence.691 (212) $20. (5) On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40). the last time GGP published its interest coverage ratio in its operating supplement. (7) Assumed to be issued as part of PF GGP's emergence.478 2. 77 .

38% 5. (10) Assumes new debt issued at 5. (3) Assumes $40mm is recourse to GGP.455 2.5% 78 (1) Includes all Secured Assset Loans. Note Simon issued 5-yr notes in Jan-10 yielding 4.0% 100.3 1.3 4. (11) See PF GGP Cash NOI slide for details.61% 5.0% 78.946 (216) (32) (198) 2.79% 5.0% 100.0% 100.029 Pct NonRecourse 80. (6) See Non-Debtor Consolidated Debt appendix page for details. Source: 5/12/10 8-K. Cash interest / duration as provided in GGP's 4/29/10 press release.89% 1.4% 100.4 2.946 (216) (32) (198) 2.499 339 206 1.1 3.PF GGP Debt Detail – Interest / Duration / Non-Recourse ($ in millions) PF GGP Debt Detail Debtor entities (1) Plus: Oakwood (2) Less: Consolidated SCPs (3) Less: Victoria Ward (4) Less: Stonestown mezz (5) PF GGP Confirmed Debtors Non-debtor consolidated debt (6) Less: 110 N Wacker (4) Less: Bridgeland (4) PF GGP Non-Debtors JV Debt (excl Consolidated JVs) (7) Less: Woodlands (4) Less: Highland (8) Less: JV SCPs (Silver City / Montclair) PF GGP Pro Rata JV Debt Homart / Ivanhoe (9) TRUPs (9) New Debt (10) PF GGP Debt (3/31/10) PF GGP LTM Adj Cash NOI (11) Plus: LTM GGMI income (12) Plus: LTM interest income Less: Overhead (13) PF GGP LTM EBITDA PF GGP Cash Interest PF GGP Interest Coverage Amt $14. Note "over the coming months.0x Cash Interest 5.92% 5.2% 94.500 $20.59% 5.50% 5.0 2.68% 5.21% Duration (Years) 6.0 3.127 1.2 4.8 3.68% 5. Source: operating supplements.0% 100.5 14. Interest rate / duration assumptions from Q3'08 operating supplement.9bn. [GGP] intend[s] to introduce many other innovations to improve the efficiency and effectiveness of the Company.8 6. (4) This debt will be going to GGO. excluding Oakwood.69% 6. (12) LTM GGMI income as of 3/31/10. Source: Q1'10 10-Q pg 29.691 $2.618 95 (750) (214) (57) 13.1 0.24% 5. (2) Interest rate assumed to be L+225.0% 100.0% 100.3 4." (13) Source: 2009 Annual Letter to Shareholders.692 2. Amount that is non-recourse deducts $2.25%.0% 77. (5) Paid down Apr-10. Source: docket #5225 and 5206.75% 5.14% 6.5 1.57% 5. (8) On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40). This debt will be issued at market rates.455 2.0% 100.75% cash interest with 3 year duration." .4 3.300 80 7 (260) $2. see "Management fees and other corporate revenues.7% 100.8 26.737 2.718 (710) (214) (57) 10.70% 5.07% 2.530 (46) (30) 2. Homart and Ivanhoe.3 NonRecourse $11.499 339 $16.0% 100.0 2. (7) See JV Debt (excluding Consolidated JVs) appendix page for details.530 (46) (30) 2.75% 5.0 5.078 2. (9) Source: 5/12/10 8-K.03% 5.0% 100.0% 100.9 3.

675 101.75% 5.8 3.8 2.0 2.3 3.250 103.530.302 41.532 (15.29% 5.369 5.052 129.68% 4/18/13 3.00% 5.1 24.75% 4.368 53. Source: Maturities per the Q3'08 operating supplement.517 161.06% 5.5 3. may have changed since 9/30/08.319 68.91% 5.8 3.1 Source: Interest rates per the Q3'08 GGP operating supplement.75% 6. Many of these interest rates.3 0. (5) Source: 5/12/10 8-K.756 12.812 Interest 5.8 3.570 84.369 79 .364) 2.000 174.0 0. (1) For loans with maturity dates preceding 3/31/10. Wacker (headquarters) Baybrook Cmbd Bayside Marketplace Cmbd Coastland Center Cmbd Coral Ridge Cmbd Cumberland Cmbd Governor's Square Cmbd Lakeland Square Mall Cmbd Meadows Cmbd Oak View Cmbd Paramus Park Cmbd Pembroke Lakes Mall Cmbd The Mall in Columbia Cmbd The Parks at Arlington Cmbd The Shoppes @ Buckland Hills Cmbd West Oaks Mall 10450 W.54% 5. (4) Source: Q1'10 supplement pg.463 83. Maturity date assumption is the midpoint of 2017-2033.0 0.5 14.103 117.75% interest rates.68% 4/5/12 4/5/12 6/7/10 4/6/12 2/1/11 4/18/13 2.24% 5.084 19.75% 5. 5.3 8. 29.402 242." The current interest rate is likely lower to the extent this debt is floating.50% Maturity 10/11/10 1/1/14 7/1/14 1/1/14 1/1/14 1/1/14 1/1/14 10/1/13 8/1/13 1/1/14 10/1/15 4/11/13 10/1/12 1/1/14 7/2/12 8/1/13 12/31/18 7/1/13 10/1/10 1/1/25 Duration (Yrs) 0.91% 5.15% 6.119 2.75% 5. Charleston LLC Senate Plaza 70 Columbia Corporate Center Bridgelands MPC (2) Consolidated JV Debt Provo Towne Centre Cmbd Spokane Valley Cmbd The Shops at La Cantera Cmbd The Streets at Southpoint Westlake Center Cmbd Non-Debtor Consolidated Debt Less: Amortization (3) Non-Debtor Consolidated Debt (3/31/10) Memo: Alternative Buildup Consolidated Debt (3/31/10) (4) Less: Total Debtor Debt (3/31/10) (5) Non-Debtor Consolidated Debt (3/31/10) Debt Balance 45.560.97% 5. Reported as "Houston Land Notes.943 168.GGP Debt Detail – Non-Debtor Consolidated Debt ($ in 000s) Non-Debtor Consolidated Debt 110 N.676 29.5 3.8 3. (2) Source: Q3'08 operating supplement.2 2.545. Source: Pershing Square assumption.84% 5. especially to the extent loans have been refinanced or are floating.00% 5.292 102.530.75% 5.8 4.14% 5.301 4.855 126.862 74.01% 5.75% 5.3 3.79% 10. we have assumed they were refinanced with 1/1/14 maturity dates and with 5.733 (22.3 3.924 400.87% 5.8 3.0 2. (3) Represents amortization that has occurred since the most recent reported date of GGP's debt.030.163) 2.006 88.45% 8.5 3.36% 6.5 3.881 68.8 5.8 (1) (1) (1) (1) (1) (1) 43.8 3.

514 45.008.5 2.5 1.825 175.760 76.792 (63.94% 5.45% 5.92% 5.46% 5.034 89.58% 5.8 1.61% Maturity 6/5/15 10/3/11 6/10/11 12/11/12 9/9/11 12/3/12 1/1/14 8/8/11 9/1/10 12/3/12 11/8/10 4/1/11 12/1/11 1/2/17 7/15/23 7/10/23 10/9/13 1/1/18 4/27/12 Duration (Yrs) 5.498 52. (5) Source: Q1'10 supplement pg.2 2.4 2.003 4.5 1.6 1.947 8.19% 6.7 1.5 1.03% 5.7 6.61% 4/27/12 2.3 0.317 31. (4) Represents amortization that has occurred since the most recent reported date of GGP's debt.69% 6.893 46.8 0. (2) Represents an SCP mall.990 168.095 133. 80 .61% 6.4 1.5 7. we have assumed they were refinanced with 1/1/14 maturity dates and with 5.83% 5.000 Interest 5.8 1. may have changed since 9/30/08.63% 7.75% interest rates.3 2.000 25.GGP Debt Detail – Joint Venture Debt (excluding Consolidated JVs) ($ in 000s) Joint Venture Debt (Excl Consolidated JVs) Alderwood Mall Cmbd Altamonte Mall Cmbd Arrowhead Towne Center Bridgewater Commons Carolina Place Cmbd (1) Christiana Mall Clackamas Town Center Cmbd First Colony Mall Cmbd Florence Mall Cmbd Galleria Tyler Cmbd Glendale Galleria Cmbd Highland Mall Cmbd Kenwood Towne Centre Cmbd Mizner Park Total Montclair Place Cmbd Natick Mall Cmbd Natick West Northbrook Court Cmbd Oakbrook Center Cmbd Park Meadows Cmbd Perimeter Mall Cmbd Pinnacle Hills Promenade / West Debt Balance 145.7 3. Source: Maturities per the Q3'08 operating supplement.281 56.149 68.68% 5.7 0.88% 5.27% 4. On 5/3/10 the property owned by the Highland JV was transferred to the lender (Source: 10-Q pg 40).5 1.000 42.119 6.72% 5. Source: Pershing Square assumption.38% 7.30% 3.5 2.60% 4.221 3.7 Joint Venture Debt (Excl Consolidated JVs) Quail Springs Mall Riverchase Galleria Cmbd Silver City Galleria Cmbd Stonebriar Centre Cmbd Superstition Springs Center The Oaks Mall Cmbd Towson Town Center Cmbd Village of Merrick Park Total Water Tower Place Cmbd Westroads Mall Cmbd Whalers Village Cmbd Willowbrook Mall Owings Mills-One Corporate Ctr Center Pointe Plaza Lake Mead Blvd & Buffalo Trails Village Center Woodlands MPC Turkey Joint Venture Debt Less: Amortization (4) Joint Venture Debt (3/31/10) (5) Debt Balance 37. (3) For loans with maturity dates preceding 3/31/10.74% 5.75% 5.04% 5.35% 5.000 70. Many of these interest rates.000 70.00% 5.000 191.4 2.87% 5.8 2.01% 6.7 1.786 125.8 13.000 95.1 Interest 6.78% 4.4 0.5 2.0 1.5975% in Jan-10.838 100.87% 5.513 103.04% 5.84% Maturity 7/6/10 2/1/13 10/3/11 1/2/13 1/11/14 8/2/10 10/5/12 10/3/11 9/10/12 10/11/11 10/1/12 7/8/11 12/1/10 9/12/11 10/7/11 10/7/11 9/1/11 10/1/12 7/5/12 12/8/11 Duration (Yrs) 0.82% 7.12% 6.343 57.30% 8.754 80.073 216.5 1.5 2.405 22.92% 5.8 3.3 3.846 2.1 (2) (3) (2) (2) (3) Source: Interest rates per the Q3'08 GGP operating supplement.945.500 65.518 64.17% 5.24% 5.528 84.4 2.5 1. Source: 1/25/10 press release.3 13.783 75.3 1.00% 8.409 152.589 5. 29.010 126.2 1.3 2.020 44. especially to the extent loans have been refinanced or are floating.95% 5. (1) GGP extended this loan at 4.820 47.203) 2.50% 6.

TRUPs. Target Net Debt is an estimate of GGP's net debt as of 9/30/10e. such as accrued interest and Permitted Claims (i. DIP loan.2mm.e. (4) Includes accrued interest on unsecured debt. Target Net Debt includes the Company's estimate of bankruptcy "exit costs.478 20. (8) See appendix for details. In addition. 81 . (3) Represents Pershing Square's estimate of bankruptcy "exit costs. Target Net Debt includes non-debt liabilities. Source: Q1'10 supplement pg 2.971 500 (650) (625) (246) (110) (121) (980) (260) $20. GGP's share of this debt as of 3/31/10 was $95. and secured debt.5bn of New Debt. transaction costs. and preferred stock. (5) As of 3/31/10. among other things. debt associated with GGP's international subsidiaries. Projected 9/30/10e balances included in Target Net Debt may differ than 3/31/10 actual debt balances due to interim amortization. Target Net Debt includes the following: $1." Furthermore. (7) Source: Q1'10 supplement pg 2. Pershing Square estimates this $650mm estimate could be more than $200mm too high. etc. pfd stock. (2) Source: Original Cornerstone Investment Agreement. (6) Per the Cornerstone Investment Agreement.PF GGP Debt Detail – 9/30/10e Reconciliation Target Net Debt Reconciliation ($ in mms) Target Net Debt (9/30/10e) (1) Plus: Proportionally Consolidated Unrestricted Cash (2) Less: Permitted Claims (3) Less: Accrued interest (4) Less: Bridgelands/Woodlands (5) Less: Brazil (6) Less: Pfd stock (7) Less: SCP debt / Highland (5) Less: Other GGO debt (5) PF GGP Debt (9/30/10e) PF GGP Debt (3/31/10) (8) Additional Amortization Through 9/30/10e $22. the KEIP)." including the KEIP. Homart/Ivanhoe. Target Net Debt includes PF GGP and GGO liabilities. Pershing Square estimate. Therefore. Source: pg 75 of docket #4874.691 ($212) (1) Target Net Debt as of the original Cornerstone Investment Agreement.

882 6.00 Emergence Sources New Debt (1) BPF (pre-clawback) (2) Clawback (3) Liquidity Equity Issuances (4) Emergence Sources Emergence Uses TopCo unsecured debt (5) DIP loan (5) Emergence Uses Excess Sources $1. (250mm to B.500 4.500 4.729 6.400 2. The estimated fee to raise the New Debt is also included as a Permitted Claim in the Target Net Debt amount.831 6.933 6. which includes GGP's convert.603 $1.PF GGP Cap Rate Detail – Excess Sources ($ in mms.400 1. and revolver.773 $1. (3) Subject to the 80/20 GGO IPO Participation.780 6. 82 . (4) Assumes GGP sells 65mm Liquidity Equity Issuances shares.773 $1.128 728 8.705 $16.450 Illustrative PF GGP Equity Raise Price $11. except per share data) $10. (5) TopCo unsecured debt.400 2.773 $1.373 400 6.373 400 6. GGP is entitled to keep 20% of excess proceeds raised above $10. (2) Represents PF GGP's sale of 440mm shares to BPF at $10 per share.773 $1. term loan.00 $12. PF GGP is entitled to keep 20% of excess proceeds raised above $10.552 $1. PF GGP will be entitled to keep more cash than presented above.00 $1.400 1.500 4.500 4.373 400 6.501 $1.400 2.938 663 8.373 400 6.773 $1.00 $1.014 689 8.373 400 6.400 2.00 $13. To the extent GGO's 80% IPO Participation exceeds permitted liabilities.052 702 8.654 $1.984 (1) New Debt is included as a source of funds because the corresponding liability is included in Target Net Debt.500 4.373 400 6.500 4. 190mm to PF).00 $14.373 400 6.976 676 8.773 $1.400 1. Rouse debt.773 $1.756 6.900 650 8. and the DIP loan are treated as uses of funds because they are excluded from Target Net Debt as part of the Reinstatement Adjustment Amount.678 6.00 $15.500 4.090 715 8.

(7) Includes pre-petition vendor liabilities and mechanics' liens that should be covered by the $650mm Permitted Claims cushion in Target Net Debt. Note: Excludes goodwill of $199. 83 . any amount of professional fees included in other liabilities need to be deducted.774 219 (69) (383) (18) (79) (100) $1. $79mm of the KEIP had been accrued as a liability. Source: 10-Q pg 12.7mm as of 3/31/10. net (1) Deferred expenses. (4) Target Net Debt includes accrued and unpaid interest on GGP's unsecured debt. Source: 10-Q pg 34. As of 3/31/10. DIP loan. and certain mortgage notes. pfd stock. Source: 10-Q pg 12. Pershing Square estimates at least 85% of this amount needs to be deducted as it likely relates to accrued interest included in Target Net Debt. Source: pgs 3 and 23 of Q1'10 10-Q. (1) Includes unconsolidated other assets at 50% share. (6) Target Net Debt includes GGP's ultimate KEIP payment. which was estimated to be $165mm as of 3/31/10. The vast majority of this is included in the Target Net Debt amount and therefore needs to be adjusted to avoid double-counting. As a result. Source: Pershing Square estimate.345 PF GGP Other Assets (as of 3/31/10) ($ in mms) Accounts & notes receivable. (5) Target Net Debt includes professional fees associated with GGP's bankruptcy. (3) Excluded from other liabilities as we assume this liability will be covered by the GGO IPO Participation. partner loans.PF GGP Cap Rate Detail – Other Assets / Other Liabilities PF GGP Other Liabilities (as of 3/31/10) ($ in mms) Consolidated other liabilities (1) Plus: Unconsolidated other liabilities (2) Less: Hughes participation payable (3) Less: Accrued interest accounted for in Target Net Debt (4) Less: Professional fees incl in other liabilities (5) Less: Accrued KEIP incl in other liabilities (6) Less: Other "Exit Costs" incl in other liabilities (7) PF GGP Adjusted Other Liabilities $1. net (1) Prepaid expenses & other assets (1) PF GGP Other Assets $506 384 796 $1. (2) Assumes pro rata GGP share of unsonsolidated other liabilities is 50%. Source: 10-Q pg 23.686 (1) Source: GGP Q1 10-Q pg 34. GGP had $450mm of accrued interest included in other liabilities (Source: 10-Q pg 34). As of 3/31/10.

(lease mark to mkt) Plus: Non-cash ground rent expense Plus: Real estate tax stabilisation adj. GGP Cash NOI GGP Cash Net Operating Income (1) 2Q09a 3Q09a 4Q09a 1Q10a $596 263 7 35 $901 (81) (58) (8) (127) (11) $616 (13) (4) 2 1 $602 $584 257 12 32 $884 (82) (65) (9) (136) (7) $585 (11) (3) 2 1 $573 $605 248 30 48 $931 (81) (82) (16) (138) (7) $607 1 (2) 2 1 $609 $593 254 12 27 $885 (85) (41) (9) (157) (8) $586 (13) (1) 2 1 $575 LTM $2. 84 . Less: FAS 141 adj.360 (1) Source: GGP operating supplements.GGP Detail – LTM Cash NOI ($ in millions) Minimum rents Tenant recoveries Overage rents Other Total Property Revenues Less: Real estate taxes Less: Repairs & maintenance Less: Marketing Less: Other property operating costs Less: Provision for doubtful accounts NOI Less: Straight-line rent adj.

300 (164) (108) (43) (39) (2) (44) $901 (6) (6) $889 1Q10a $758 26 342 80 (10) (2) $1.171 (161) (112) (33) (24) (17) (35) $789 (11) (7) $772 2Q09a $754 26 345 56 (9) (3) $1. Multiplying this by 1.8% 71 92 22.Simon Cap Rate Detail – LTM Cash NOI ($ in millions) Minimum rent Overage rent Tenant reimbursements Other income Less: Interest income (1) (2) Less: Gains on land sales (2) Total Revenue Less: Property operating costs Less: Real estate taxes Less: Repairs & maintenance Less: Advertising & promotion Less: Provision for credit losses Less: Other NOI Less: Straight-line rent adj.047mm.2% Source: Simon operating supplements. For example.302x results in assumed total share interest income of $10. (3) Source: See Footnotes to Reconciliation of Consolidated Net Income to FFO in Simon's operating supplements for straight-line rent and FAS 141 adjustments. (2) Simon does not disclose the amount of interest income and gains on land sales from its unconsolidated segment. (1) Simon includes interest income in other revenue.191 (180) (99) (29) (29) (0) (36) $817 (8) (6) $803 4Q09a $806 58 376 92 (13) (19) $1.334 (172) (106) (47) (42) (10) (41) $916 (9) (9) $899 1Q09a $746 21 345 68 (9) (0) $1. Q1'10 reported consolidated interest income was $7.714mm. Assumes the ratio of interest income and gains on land sales in other revenue is similar to the ratio of consolidated other income to total share. (3) Less: FAS 141 adj.284 62 92 32.9% 56 80 30.194 (157) (114) (34) (25) 3 (35) $830 (5) (5) $821 LTM $3. (lease mark to mkt) (3) Cash NOI Memo: Other income Consolidated portion Total share Ratio 4Q08a $807 63 393 92 (15) (5) $1. 85 .2% 45 68 33.168 (168) (106) (30) (25) (9) (40) $791 (7) (13) $770 3Q09a $754 33 356 57 (10) (0) $1.7% 36 57 35. This needs to be backed out to create an apples to apples comparison with GGP.6% 35 56 37.

250 126 1.Simon Cap Rate Detail – Cap Rate Buildup (units in millions.845 (3. (4) Simon's share of U.5x EBIT multiple. except per share data) Share Price (as of 5/28/10) Shares & Units (1) Market Cap Pro Rata for JVs: (2) Plus: Total Debt Plus: Preferred Debt Plus: Other Liabilities Less: Cash Less: Other Assets (3) Less: Development Pipeline (4) TEV Less: Mgmt Business (5) Value of Simon's REIT LTM Cash NOI (6) Implied Cap Rate $85.284 6. (6) See Simon LTM Cash NOI appendix page for details.03 352 $29.S.445) (35) $50. (3) Excludes $20mm of goodwill (Source: Simon 2009 10-K).038 (229) $49.6% (1) Includes Series I preferred shares and options (Source: Simon Q1'10 operating supplement). (2) As reported in Simon's pro rata balance sheet (Source: Simon Q1'10 operating supplement).609) (2.906 24. CIP (page 36 of Q1'10 operating supplement). (5) Applies 25% EBIT margin to LTM fee income of $122mm and a 7. 86 .809 $3.

58 $53.34x based on GGP's historical ratio of 1. (1) Represents Consolidated Portfolio (i. excl unconsolidated).09 NA $393 12. Simon does not disclose occupancy cost data.5% 1.27x. The exercise above uses historical reported GGP data to attempt to back into Simon's implied Regional Malls occupancy cost. (5) Source: Simon Q4'09 operating supplement.0% 14.32 9. (8) Source: GGP Q4'09 operating supplement. 87 . Actual data may vary.4% 15. (2) GGP used to report rent per sq ft instead of rent & recoverable common area costs per sq foot before Q1'07.90 1. Source: GGP Q4'06 operating supplement.27x $444 10.1% 1.Simon Occupancy Cost Detail Occup.29 with assumed 3% YoY growth (same as Q4'06 reported growth).24x (2) Memo: GGP Q4'09 (5) (3) $40. Simon derives approximately 5% more of its revenue from tenant reimbursements than GGP.58 $44. (3) Source: GGP Q4'07 operating supplement. Cost Buildup (1) Simon GGP Q4'09 Q4'07 Rent per sq ft Recoverable common area costs per sq ft Rent & recoverable common area costs per sq ft Rent & recoverable common area costs PSF / rent PSF Reported Tenant Sales per Square Foot Rent & recoverable common area costs / tenant sales Occupancy Cost Adjustment Factor (4) $35.04 13. (7) Based on GGP's adjustment factor as of Q4'09.6% 1.22x (8) (3) (5) (8) (3) (8) (7) Note: Unlike GGP.e.62 1. This is done because GGP does not disclose rent per sq ft metrics on a pro rata basis.1% 12.22x (6) NA NA $47.34x $433 12. Represents GGP Q4'06 consolidated rent per sq ft of $34. (4) Represents the ratio of Occupancy Cost to rent & recoverable common area costs / tenant sales. (6) Assumes Simon's ratio of rent and recoverable common area costs PSF / rent PSF is 1.

GGO Detail – Victoria Ward Comp 88 .

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