T a ub ma n Ce nte rs T o o Che a p T o I g no re - Va lue I nve sto rs Buying Hig h Qua lity Re ta il Re a l E sta te De c e mb e r 2017 www.Save T aubman.c om Ple a se e ma il q ue stio ns o r c o mme nts to : Sa ve T a ub ma n@ L a nda ndBuilding s.c o m
Hig h Qua lity Re ta il Re a l E sta te Dra wing in Pro mine nt Buye rs • Oppo rtunistic b uye rs a re ta king a dva nta g e of e xtre me disc ounts a t pub lic ly tra de d re ta il re a l e sta te c o mpa nie s • T he re c e ntly a nno unc e d $25B sa le o f hig h q ua lity ma ll c o mpa ny We stfie ld Co rp. is the la te st tra nsa c tio n hig hlig hting de e p va lue in the se c to r - T a ub ma n’ s po rtfo lio , whic h we b e lie ve is e ve n hig he r q ua lity, a t a 4% c a p ra te implie s ~60% upside to ~$100 NAV - Hudso n’ s Ba y Co mpa ny (HBC:CN) ha s be e n va lue d a t 3x the c urre nt sha re pric e de spite a pplying a mo re c o nse rva tive 5% c a p ra te tha n the a nno unc e d We stfie ld sa le CO o n De c e mb e r 13 th disc lo se d a se ve ra nc e pla n tha t prote c ts se nior • T he 8-K file d b y T le ve l ma na g e me nt in the e ve nt o f a c ha ng e o f c o ntro l tra nsa c tio n • Be tte r- tha n- e xpe c te d holida y shopping se a son is ta ilwind fo r re ta ile rs a nd la ndlo rds • T a ub ma n ma lls a re bustling with a c tivity , e vide nt in the la te st pho to to ur S o urc e : L and & Building s’ analysis, Blo o mb e rg , T he Wall S tre e t Jo urnal, T ho mso n Re ute rs, F inanc ial T ime s, Co mpany S E C filing s www.Sa ve T a ub ma n.c o m 2
Va lue I nve sto rs Buying Hig h Qua lity Re ta il Re a l E sta te • Unib a il-Ro da mc o a g re e d to a $25B purc ha se o f hig h q ua lity US/ E uro pe ma ll la ndlo rd We stfie ld • E llio tt Ma na g e me nt disc lo se d a 4% sta ke in T a ubma n Ce nte r s • Sta rb o a rd Va lue a nd T hird Po int ha ve b o th disc lo se d sta ke s in Ma c e r ic h • Bro o kfie ld Asse t Ma na g e me nt ma de a pub lic o ffe r fo r GGP • We Wo rk/ Rhô ne ma de inve stme nt in Hudson’s Ba y , whic h o wns a c o lle c tio n o f hig h q ua lity re ta il re a l e sta te Pro mine nt inve sto rs c o ntinue to ta ke a dva nta g e o f the o ppo rtunity to purc ha se the hig he st q ua lity re ta il re a l e sta te a t a n a ttra c tive c o st b a sis S o urc e : Wall S tre e t re se arc h, L and & Building s' re se arc h, T ho mso n Re ute rs, Blo o mb e rg , Natio nal Re al E state I nve sto r, I nstitutio nal I nve sto r www.Sa ve T a ub ma n.c o m 3
We stfie ld Sa le Hig hlig hts Se ve re Disc o unt fo r T a ub ma n Ce nte rs • T CO me rits a hig he r va lua tio n tha n We stfie ld, in o ur vie w, g ive n supe rio r q ua lity o n va rio us me tric s T CO has ne ar ly 30% T CO has 30% gr e ate r T CO has 10% highe r mo r e e xpo sur e to malls c o nc e ntr atio n o f Class A sale s pr o duc tivity with sale s o ve r $800 psf o r be tte r as % o f NOI 100% 70% $820 62% $802 90% 60% $800 90% 50% $780 80% 40% $760 34% 30% $740 70% $726 20% $720 61% 60% 10% $700 $680 50% 0% T CO WF D T CO WF D T CO WF D S o urc e : L and & Building s’ re se arc h, Wall S tre e t re se arc h, c o mpany filing s No te : Co nc e ntratio n o f Class A and sale s o ve r $800 psf are b ase d o n We stfie ld’ s asse ts in the Unite d S tate s, whic h c o mprise appro ximate ly 75% o f We stfie ld’ s po rtfo lio , with the b alanc e in the Unite d King do m/ E uro pe ; Ove rall sale s pro duc tivity b ase d o n e ntire po rtfo lio s o f e ac h c o mpany www.Sa ve T a ub ma n.c o m 4
T a ub ma n Offe rs a Supe rio r Ma ll Po rtfo lio with Sig nific a nt Ope ra tio na l Upside • T a ub ma n’ s E BI T DA ma rg ins unde rpe rfo rme d Cla ss A Ma ll Pe e rs b y 770 b ps o n a ve ra g e o ve r the pa st five ye a rs - T a ub ma n’ s NAV wo uld inc re a se b y $20 pe r sha re , o r 20%, if T a ub ma n c lo se s E BI T DA ma rg in g a p to Cla ss A Ma ll Pe e rs, in o ur vie w T a ub ma n’ s NAV is $100 pe r sha re a pplying the sa me ~4% c a p ra te pa id fo r We stfie ld, ye t T a ub ma n o wns a hig he r q ua lity po rtfo lio with mo re o pe ra tio na l upside S o urc e : L and & Building s’ re se arc h, Co mpany S E C filing s, Wall S tre e t Re se arc h No te : Class A Mall Pe e rs de fine d b y L and & Building s as T aub man’ s hig h q uality Class A Mall Pe e rs GGP, I nc ., T he Mac e ric h Co mpany and S imo n Pro pe rty Gro up I nc . (c o lle c tive ly, “Class A Mall Pe e rs”) www.Sa ve T a ub ma n.c o m 5
T he Stre e t Unde rsc o re s Po sitive I mplic a tio ns fo r T a ub ma n “ T he prima ry be ne fic ia rie s on the ne ws [We stfie ld] a re T a ubma n Ce nte rs (T CO) a nd Ma c e ric h (MAC) – but T a ubma n to a la rg e r de g re e ….Bo th o pe ra te hig h q ua lity ma lls a nd a re o f simila r q ua lity to We stfie ld’ s U.S. po rtfo lio , in a g g re g a te … T a ubma n ha s c onside ra bly more upside g ive n the disc ount to NAV a t whic h it c urre ntly tra de s re la tive to Ma c e ric h ” Gre e n Stre e t Adviso rs (e mphasis adde d) “…with ~75% o f We stfie ld’ s po rtfo lio in the U.S., the pric ing a ppe a rs fa vora ble … a nd sug g e sts a c ontinue d bid for hig h- qua lity Cla ss A U.S. ma lls .” Citi Re se arc h (e mphasis adde d) “ We b e lie ve the va lua tio n ha s positive implic a tions for A- ma ll pla ye rs in the U.S. a nd possibly puts more pre ssure on the m to c onside r stra te g ic a lte rna tive s to c lose the g a p be twe e n the ir c urre nt va lua tion a nd NAV . ” Je ffe rie s Re se arc h (e mphasis adde d) T he We stfie ld a c q uisitio n is a te sta me nt to inve sto r de ma nd fo r c la ss A ma lls a nd b o de s we ll fo r T a ub ma n Ce nte rs S o urc e : Blo o mb e rg , Citi Re se arc h, Gre e n S tre e t Adviso rs, Je ffe rie s Re se arc h www.Sa ve T a ub ma n.c o m 6
T a ub ma n’ s Ne w Se ve ra nc e Pla n Pro te c ts Se nio r Ma na g e me nt in the E ve nt o f a Cha ng e o f Co ntro l • L a st we e k, T a ub ma n Ce nte rs disc lo se d a ne w se ve ra nc e pla n fo r c e rta in me mb e rs o f se nio r ma na g e me nt, pro te c ting suc h e xe c utive s in the e ve nt o f te rmina tio n fo llo wing a c ha ng e in c o ntro l, with the fo llo wing fe a ture s: 1. Ca sh lump sum pa yme nt e q ua l to the sum o f: 250% o f the sum o f: a ) 12 time s the hig he st mo nthly b a se sa la ry in the pre c e d ing 12 mo nths; a nd b ) Gre a te r o f the ta rg e t b o nus o f the te rmina tio n ye a r o r the hig he st b o nus e a rne d in the la st 3 full ye a rs 18x the mo nthly COBRA pre mium 2. F ull a nd imme dia te ve sting o f unve ste d e q uity a wa rds unde r the L o ng T e rm I nc e ntive Pla n 3. Ve sting o f unve ste d pe rfo rma nc e e q uity a wa rds 4. Pa yme nt o f a c c rue d b ut unpa id sa la ry plus a c c rue d b ut unuse d pa id time o ff T a ub ma n imple me nte d simila r a g re e me nts in 2003 whe n Simo n wa s se e king to purc ha se the Co mpa ny S o urc e : L and & Building s’ re se arc h, Wall S tre e t re se arc h, Co mpany S E C filing s, T he De al Pipe line www.Sa ve T a ub ma n.c o m 7
We stfie ld a nd We Wo rk Hig hlig ht De ma nd fo r Hig h Qua lity Re ta il Re a l E sta te • Hig h qua lity re ta il re a l e sta te is in hig h de ma nd , mo st re c e ntly e vide nc e d b y: - Unib a il-Ro da mc o ’ s purc ha se o f Cla ss A US/ E uro pe ma ll la ndlo rd We stfie ld Co rpo ra tio n fo r $25 b illio n, o r a ~4% c a p ra te - Hudso n’ s Ba y’ s re a l e sta te va lue disc lo se d b y ma na g e me nt, whic h is triple the c urre nt sha re pric e , is b a se d o n a 5% b le nde d c a p ra te - Hudso n’ s Ba y so ld its L o rd & T a ylo r fla g ship sto re to We Wo rk fo r $850 millio n, o r 30% mo re tha n its a ppra ise d va lue • HBC ma na g e me nt’ s po te ntia l pla ns with re spe c t to a g o -priva te tra nsa c tio n, a s re po rte d o ve r the summe r, we re like ly thwa rte d just mo nths a g o b y the tig hte ning o f the c re dit ma rke ts a fte r T o ys “R” Us a nno unc e d its b a nkruptc y - I nve sto r de ma nd fo r hig h q ua lity re ta il re a l e sta te tha t HBC o wne d c o uld pro vide c a pita l fo r suc h a tra nsa c tio n S o urc e : L and & Building s’ re se arc h, Wall S tre e t re se arc h, Co mpany S E C filing s www.Sa ve T a ub ma n.c o m 8
Recommend
More recommend
