Pershing Square CapitalPershing Square Capital Management | NotesThe following piece on Pershing Square Capital Management and Bill Ackman (shown left) is being published as part of our daily effort to track hedge fund events in the industry. To review other hedge fund related announcements please see our Hedge Fund Tracker Tool.Resource #1: (11.18.08) Target Corp (TGT.N) shareholder Pershing Square Capital Management will present on Wednesday a revised proposal to boost Target's long-term value and address concerns raised about an earlier version calling on the retailer to spin off the land under its stores.But a Target spokeswoman said the discount retailer is still reviewing the Pershing proposal and has not yet made a decision on it. Target shares were down 4.8 percent at $29.99 in late afternoon trading on the New ...

Deutsche Bank analyst Lou Taylor in a research note Monday said a sale of General Growth Properties Inc.  appears more likely after the company announced two of its independent directors will take over the roles of chief executive and president on an interim basis. The real estate investment trust also said it continues to explore strategic alternatives and is marketing some of its assets. “With so many assets potentially being marketed, it makes sense for the board to more seriously consider the sale of the entire company”.

YET, GGP’s CFO, CIO and President netted about $40 million in late September when the stock was selling for $16.  A month later, the company is bust and the stock is down 80-90% and we are supposed to believe that they had no clue this was going to happen.  They should be required to give that money back to the

...

Highwoods Properties, Inc. (HIW) is a fully integrated, self-administered real estate investment trust (REIT) that owns or has management interests in office, industrial, retail, and service center properties, including development projects and apartment units. Operationally, the company's properties are performing relatively well; most operating metrics increased in the 2nd quarter and the company is covering is dividend with operating cash.However, the U.S. economy is rapidly declining and office/industrial owners will get hit the hardest due to continued job losses. We think operations will weaken, and suburban office owners will have difficulty maintaining occupancy and increasing rents. We would hold the shares for the above average yield and wait until the credit markets and commercial real estate fundamentals stabilize. At 12.1x 2008 FFO [funds from operations] estimates, HIW trades at about a 5% discount to office REIT peers that we cover. The company now trades ...

Taubman Centers, Inc. (TCO) is a real estate investment trust (REIT) engaged in owning, developing, acquiring, and operating regional shopping centers throughout the U.S. A large number of these shopping centers are strategically located in major metropolitan areas. The company's five largest non-anchor tenants are: The Gap (3.5% of mall GLA as of June 30, 2008), Forever 21 (3.3%), Limited Brands (2.6%), Abercrombie & Fitch (2.5%), and Foot Locker (1.9%).

We are concerned about retail stocks in a very uncertain economic environment. Consumer spending patterns are sluggish, and we expect 2008 to be one of the worst holiday shopping seasons in years. TCO missed our 2Q FFO estimates by $0.08 per share due to lower than expected fee income and higher expenses.

Overall, the company's portfolio continues to perform well; TCO reported increases in rents, sales and occupancy in the 2nd quarter vs. the year-earlier period. Additionally, the company has

...

Operationally, ProLogis’ (PLD) portfolio continues to perform well with stable occupancies and increasing rents. FFO [funds from operations] was $1.06 per share in 2Q08 versus $1.16 in 2Q07. The company reiterated its earlier full year 2008 FFO guidance range of $4.65 - $4.85 per share, with heavy CDFS [Corporate Distribution Facilities Services] income expected in the 4th quarter.

The US economy continues to slow; PLD has 65% of its asset base in the US, which adds to near term risk. The company is continuing to focus its development efforts outside of North America. We think PLD is still the best-positioned industrial REIT [real estate investment trust] with a stable balance sheet and global platform. Shares are off nearly 30% over the past three months. We maintain our Buy rating, and investors now have the opportunity to buy heavily discounted shares.

PLD now trades at 9.0x 2008 FFO estimates, putting it

...

Anthracite Capital’s (AHR) is a real estate finance company that operates as a real estate investment trust (REIT).

Operating earnings for 2Q08 were $0.23 per share, down from $0.36 per share in 2Q07, primarily due to the increase in loss assumptions on CMBS investments, and one-time loss reserve for a loan in Carbon II.

AHR is trading at 4.5x our 2008 estimated OEPS and 4.7x estimated EPS. On an EPS basis, the company is valued at a 17% premium to sector averages. Shares are off 38% over the past three months, due to a general sector decline and current liquidity problems in commercial and residential real estate.

The good news is that AHR has limited exposure to residential loans, and commercial real estate fundamentals are holding up for now. Due to recent equity sales, the company has the liquidity to pay its current dividend, get through the current market turmoil,

...

Colorado is a state of thriving companies. The state’s industries are many and varied; from aerospace & satellite, to agriculture, bioscience, mining and natural resources, financial services, manufacturing and telecommunication. Some great key facts to know about Colorado are:1. Over 100 companies are in the aerospace industry in Colorado.2. The aerospace and satellite industry provide the state with around 130,000 jobs.3. The agricultural industry generates over 105,000 jobs in the state.4. Colorado’s top ranch and commodity products are cattle and diary products.5. There are 380 bioscience companies in the state, employing over 16,000 people.6. Colorado’s nanotechnology industry is number 6 in the country with 75 companies in 20 cities around the state.7. Colorado ranks number 11 in the country for oil production.8. Legislation passed requires that Colorado produce 10% of its energy from renewable sources by the ...

Developers Diversified (DDR) is a real estate investment trust (REIT) which specializes in the acquisition, ownership, development, redevelopment, leasing, and management of shopping centers and business centers.

The company reported FFO [funds from operations] of $0.82 per share during the 2nd quarter, in line with the company guidance, but $0.12 per share below our estimates. The miss was due to lower than expected transactional income. Overall 2nd quarter results were good as the company is still increasing rents on new/renewal rents.

We are maintaining our Hold rating due to uncertainty in the retail environment. At 8.1x our 2008 FFO estimate of $3.95 per share, DDR is trading at a 38% discount to its peer group average. Overall operations are holding up relatively well, and we think the company will post positive overall FFO growth in 2008. The company’s discount to its peer group provides good downside protection in the

...