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  "documentTitle": "Mall REIT sector (long General Growth Properties) (GGP)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "presentationDate": "2010-05-26 00:00:00",
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      "text": "If a mall is a portfolio of bonds, then a mall REIT is a portfolio of portfolios of bonds",
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      "text": "The reason is that B minus and lower malls have potential catastrophic risk. For example, a mall might lose key anchor tenants, or be disintermediated by a better located mall, which could cause a mall to lose 80% or more of its value",
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      "text": "On the other hand, a mall REIT primarily financed with unsecured, recourse debt (i.e. Simon or Westfield) is analogous to an investor’s portfolio with margin debt, where the failure of a portion of the portfolio can destroy large amounts, if not 100%, of the equity value",
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      "text": "If such events were to destroy the value of a mall, the exposure to an investor with non-recourse financing is limited to its equity in the mall because the property can be “sold” to the lender for the mortgage amount",
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      "text": "Non-recourse financing creates material value for all real estate portfolios, but mall portfolios in particular",
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      "text": "The Value of Non-Recourse Debt",
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