NOT AN ANALYST » Pershing Square

Pershing Square Q1 and Q2 letter to investors

michelangelo — Fri, 27 Aug 2010 19:26:57 +0000

Here you can find the Pershing Square Q1 and Q2 letter to investors. The Q3 letter highlights the possible consolidation of the retail book industry, which increases the probability that BGP is included in that potential merger activity. The Q1 letter, talks about the $20 bid from Simon Properties and why the GGP board wisely turned it down. Enjoy the reading.

Pershing-Q1-2010-Investor-Letter

Pershing-Square-Q2-10-Investor-Letter

The latest on GGP from William Ackman

michelangelo — Tue, 08 Jun 2010 15:09:11 +0000

This represents the latest piece of the puzzle on the GGP story. Ackman sees GGP priced around $15 and GGO at around $5 upon emergency from Bankruptcy. Currently, the market is valuing GGO at -$1, obviously a mispricing according to Ackman. Enjoy.

GGP-Ackman-Presentation-at-Ira-Sohn-Monference-May-2010

I like to call William Ackman a genius

michelangelo — Wed, 23 Dec 2009 02:12:09 +0000

After days of valuation chaos, William Ackman, the founder of Pershing Square Capital Management, released a detailed report on General Growth Properties, highlighting the upside potential of the REIT and responding with vigor to the misleading valuation from Hovde Capital Advisors. What’s genius about it is the timing. Few days ago, the Court approved a dividend the payment of 0.19 dollars a share for holders of record December 28, in order for the REIT to maintain its tax status. Today was the last day to buy the stock and still get the dividend in January 28 2010, as it will trades ex-dividend tomorrow. Realizing this, the shorts had to cover and longs had to buy, which magnified the effect of the report. It was just genius. I hope you can appreciate this reading as much as I did.

Why Pershing Square doesn’t like Realty Income Corp

michelangelo — Tue, 15 Dec 2009 14:03:18 +0000

The attachment below explains the reasons why Pershing Square is shorting Realty Income Corp. I don’t really agree that, with a 7.50% drop in NOI and a Cap Rate of 9.50%, the price should be 14 dollar per share. The company is currently valued with a very conservative Cap Rate, around 11%, which accounts for all the risks and unknowns. In my previous post, I wrote that 26 dollar per share is a fair price for the Company at this moment. I don’t see 40% premium to NAV as Pershing Square indicates. It’s also interesting how, during the Q1 and Q2 earnings call Q&A, the Company Representative wouldn’t even talk about the name of the tenants. I agree with the fact that the SEC may require to disclose the name of the lessees, which is another catalyst for a large drop in value. Well, enjoy the reading.