SPG - Alert Bill Ackman: PREIT Could Be The Next GGP
- PREIT looks a lot like GGP in 2008, with high risk, and high potential reward.
- PREIT is currently trading at 4% of its 2016 peak of $25, despite taking action to offload high cap rate non-core malls in tertiary markets.
- At $1.70 per share, PREIT is currently trading at an 85% discount to NAV of $11, but there is risk of going to zero.
- The 2015 plan to maximize shareholder value and close the gap between price and NAV has been executed, but a high debt load is impeding recovery.
- PREIT is largely a high quality class A mall REIT that is priced at a Class C cap rate.
For further details see:
Alert Bill Ackman: PREIT Could Be The Next GGP