simon property group's take over of ggp, page-4

Apples

It also tells me that NTA isnt the be all and end all. In Australia we have an obsession with it.

there are many other quantitative and qualitative factors to take into account when looking at a company like General Growth

If Simon just put in a takeover offer based purely on General's NTA, the offer would have been close to zero.

im sure Simon has looked at other micro and macro factors such as

- ICR (ability for General to service its debts),
- extravagent cap rates/yields on its properties,
- stabilisation of occupancy rates,
- retail sales numbers showing vast improvement in recent months,
- By growing its regional mall base by nearly 100%, synergies can be achieved
- financiers support of General Growth (long tern refinancing of loans)


NTA is like looking at a painting with your nose touching the painting. To get a full appreciation of the painting, you need to take a few steps back

Cheers