General Growth Properties GGP
The three reasons
- 1
GGP is worth ~$20/share sum-of-parts ($15 PF GGP + $5 GGO) vs. $14 price — 43% upside by year-end
- 2
PF GGP will re-enter REIT indexes as a 'must-own' ~$16bn stock; top 25 REIT holders own 0% today
- 3
Macro backdrop for mall REITs has flipped — consumer, tenant sales, and cap rates all recovering since 2009
Primary demands
- Support the Brookfield / Pershing Square / Fairholme backstop plan to recapitalize GGP and pay unsecured creditors in full
- Emerge GGP from bankruptcy as two separate public companies: PF GGP (core mall REIT) and GGO (master planned communities + development assets)
- Transfer 13 underperforming 'Special Consideration Properties' to lenders to upgrade portfolio quality
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (11)
Notes
Delivered at the 2010 Ira Sohn Conference as the follow-up to Ackman's 2009 'Buck's Rebound Begins Here' GGP pitch. Classic victory-lap-meets-next-leg structure: Part 1 reprises the 2009 bankruptcy thesis and shows it played out; Part 2 pivots to the post-emergence sum-of-parts opportunity (PF GGP ~$15 + GGO ~$5 = ~$20 vs $14 price, 43% upside). Strong SCQA: 'A Little Context...' section uses explicit before/after framing (2009 world vs. 2010 recovery). Memorable rhetorical devices: 'a mall is like a trust holding a portfolio of bonds' analogy; four-slide illustrative walk-through comparing non-recourse vs. recourse leverage math (with a Mr. Bill clown 'OHH NOOO!!!' image when recourse equity is wiped out) — rare visual humor for Pershing. Crossholdings analysis slide (p39) is the rhetorical peak: shows top 25 REIT holders own ~60% of peer REITs but <1% of GGP, implying $9bn of forced buying. Closes with a surprise 'And one more thing...' Steve Jobs-style reveal of a new ~150mm-share Citigroup position. No villain — this is a constructive/analytical pitch, not adversarial; management (Adam Metz, Steve Sterrett of SPG) is quoted supportively, not contradicted. Standard Pershing Square institutional blue/white deck — clean but not top-tier editorial.