Exhibit 99.57
Interim Preliminary Work Papers Relating to Allocation of Consideration
Delivered by the Independent Valuer
to the Supervisor on October 14, 2011
The following are interim preliminary work papers with respect to allocations of consideration submitted by the independent valuer to the supervisor for its review and verification and were not intended to, and did not, reflect the final work product or advice or conclusions of the independent valuer.
The tables that follow also include a summary of projections that were utilized by the independent valuer in calculating the exchange values reflected in these preliminary work papers. The projections included in these interim preliminary work papers were not final and were being prepared solely for the purpose of determining the relative values among the subject LLCs, the private entities and the management companies and to establish exchange values to facilitate the consolidation and should not be relied upon for any other purpose, including without limitation, as an indicator of future performance of the company, the properties, the subject LLCs or the private entities. The final projections used in preparing the exchange values are included as Appendix C-1 to the prospectus/consent solicitation. The projections should not be relied upon in determining the market value or the estimated value of the company after giving effect to the consolidation and the IPO. The actual performance of the properties may be materially different from these projections because of changes in market conditions and many other factors.
Neither the subject LLCs nor the supervisor as a matter of course make public projections as to future performance, earnings or other results beyond the current fiscal year, and the supervisor is especially reluctant to disclose projections for extended periods due to the unpredictability of the underlying assumptions and estimates. The projections with respect to the properties were presented by the independent valuer based on the information provided by management of the supervisor and analysis performed by the independent valuer and reviewed and approved by management of the supervisor.
These projections were not prepared in accordance with published guidelines of the SEC or the guidelines established by the American Institute of Certified Public Accountants for preparation and presentation of financial projections. This information is not fact and should not be relied upon as being necessarily indicative of future results, and readers of this prospectus/consent solicitation are cautioned not to place undue reliance on the prospective financial information. Neither the company’s independent registered public accounting firm nor any other independent accountants have examined, compiled or otherwise applied procedures to the projections presented herein or express an opinion or any other form of assurance on them. The summary of the projection is being included in this prospectus/consent solicitation solely because the projections were used by the independent valuer in calculating the illustrative exchange values using the discounted cash flow method to allocate residual value.
The projections were based on numerous assumptions that may prove to be wrong. Important factors that may affect actual results and cause the projections to not be achieved include, but are not limited to, risks and uncertainties relating to the company and other factors described under “Risk Factors” and “Forward-Looking Statements.” The projections also reflect assumptions as to certain business decisions that are subject to change. As a result, actual results may differ materially from those contained in the projections. Accordingly, there can be no assurance that the projections will be realized.
Certain of the prospective financial information set forth herein may be considered non-U.S. GAAP financial measures. The independent valuer believed this information could be useful in valuing the properties. Non-U.S. GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with U.S. GAAP, and non-U.S. GAAP financial measures may not be comparable to similarly titled amounts used by other companies.
The inclusion of the summary of the projections in this prospectus/consent solicitation should not be regarded as an indication that any of the company, the subject LLCs or the supervisor or their respective affiliates, advisors or representatives considered the projections to be predictive of actual future events, and the projections should not be relied upon as such. None of the company, the subject LLCs or the supervisor or their respective affiliates, advisors, officers, directors, partners or representatives can give you any assurance that actual results will not differ from the projections, and none of them undertakes any obligation to update or otherwise revise or reconcile the projections to reflect circumstances existing after the date the projections were generated or to reflect the occurrence of future events even in the event that any or all of the assumptions underlying the projections are shown to be in error. None of the company, the supervisor and the subject LLCs intend to make publicly available any update or other revision to the projections. None of the company, the supervisor and the subject LLCs or their respective affiliates, advisors, officers, directors, partners or representatives has made or makes any representation to any participant or other person regarding the company’s or the subject LLCs ultimate performance compared to the information contained in the projections or that forecasted results will be achieved. None of the subject LLCs, the private entities, the management companies or any of their affiliates has made any representation to the company concerning the projections.
B.B.S.F., L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 14,600,000 | ||||||
ARSA Associates | PLM Family 2000 LLC | |||||||
Allocation % | 47.368 | % | 52.632 | % | ||||
Allocation $ | $ | 6,915,786 | $ | 7,684,214 | ||||
ARSA Associates: | ||||||||
PLM Family 2000 LLC | Anthony E. Malikn | |||||||
73.6111 | % | 26.3889 | % | |||||
Remaining capital | $ | 17,249,958 | $ | 0 | ||||
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Return of capital | 6,915,786 | 0 | ||||||
Priority | 0 | 0 | ||||||
Remainder | 0 | 0 | ||||||
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Total | $ | 6,915,786 | $ | 0 | ||||
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Consolidated Equity Value
Property | Legal Entity | Investor Class | Value | Total Value Check | ||||||||||||
112-122 West 34th Street | 112 West 34th Street Company L.L.C. | 50% LMH (master partner) | $ | 66,508,408 | ||||||||||||
112 West 34th Street Company L.L.C. | 23% of PLM group not subject to override | $ | 30,593,868 | |||||||||||||
112 West 34th Street Company L.L.C. | 27% of PLM group subject to override | $ | 18,497,270 | |||||||||||||
112 West 34th Street Company L.L.C. | Wien - Override | $ | 16,127,102 | |||||||||||||
112 West 34th Street Company L.L.C. | Override | $ | 1,290,168 | |||||||||||||
112 West 34th Street Company L.L.C. | Malkin Holdings LLC - Override | $ | 6,852,029 | |||||||||||||
112 West 34th Street Associates L.L.C. | 112 West 34th Street Associates L.L.C. | $ | 138,943,576 | |||||||||||||
112 West 34th Street Associates L.L.C. | Malkin Holdings LLC - Override | $ | 14,938,175 | $ | 293,750,597 | 6.5 | % | |||||||||
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1333 Broadway | 1333 Broadway Associates L.L.C. | Participants | $ | 136,421,763 | $ | 136,421,763 | 3.0 | % | ||||||||
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1350 Broadway | 1350 Broadway Associates L.L.C. | Peter L. Malkin Group | $ | 58,055,484 | ||||||||||||
1350 Broadway Associates L.L.C. | Malkin Holdings LLC - Override | $ | 14,465,609 | |||||||||||||
1350 Broadway Associates L.L.C. | David M. Baldwin Group | $ | 72,521,092 | $ | 145,042,184 | 3.2 | % | |||||||||
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1400 Broadway | 1400 Broadway Associates L.L.C. | Anthony E. Malkin | $ | 58,300,900 | ||||||||||||
1400 Broadway Associates L.L.C. | Peter L. Malkin | $ | 122,528,211 | |||||||||||||
1400 Broadway Associates L.L.C. | LMH 1400 LLC | $ | 61,264,106 | |||||||||||||
1400 Broadway Associates L.L.C. | Malkin Holdings LLC - Override | $ | 12,795,075 | |||||||||||||
1400 Broadway Associates L.L.C. | Peter L. Malkin Family 5 LLC - Override | $ | 1,481,603 | |||||||||||||
1400 Broadway Associates L.L.C. | Override | $ | 1,481,603 | $ | 257,851,497 | 5.7 | % | |||||||||
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501 Seventh Avenue | Seventh & 37th Building Associates L.L.C. | Participants | $ | 51,236,960 | ||||||||||||
Seventh & 37th Building Associates L.L.C. | Malkin Holdings LLC - Override | $ | 4,814,618 | |||||||||||||
501 Seventh Avenue Associates L.L.C. | Participants | $ | 47,443,190 | |||||||||||||
501 Seventh Avenue Associates L.L.C. | Malkin Holdings LLC - Override | $ | 5,163,021 | $ | 108,657,789 | 2.4 | % | |||||||||
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1359 Broadway | Marlboro Building Associates L.L.C. | Participants | $ | 133,504,917 | ||||||||||||
Marlboro Building Associates L.L.C. | Malkin Holdings LLC - Override | $ | 9,344,093 | $ | 142,849,010 | 3.2 | % | |||||||||
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One Grand Central Place | 60 East 42nd St. Associates L.L.C. | Participants | $ | 258,373,070 | ||||||||||||
60 East 42nd St. Associates L.L.C. | Malkin Holdings LLC - Override | $ | 28,599,230 | |||||||||||||
Lincoln Building Associates L.L.C. | Participants | $ | 243,799,918 | |||||||||||||
Lincoln Building Associates L.L.C. | Malkin Holdings LLC - Override | $ | 27,044,435 | $ | 557,816,654 | 12.4 | % | |||||||||
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Empire State Building, 350 Fifth Ave | Empire State Building Co L.L.C. | Master Partners | $ | 907,115,973 | ||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 10% Investors | $ | 89,674,522 | |||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 10% Override | $ | 29,291,507 | |||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 5% Investors | $ | 44,837,261 | |||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 5% Override | $ | 14,645,754 | |||||||||||||
Empire State Building Co L.L.C. | 1273 Realty Company Investors | $ | 50,528,432 | |||||||||||||
Empire State Building Co L.L.C. | 1273 Realty Company - Override | $ | 53,566,844 | |||||||||||||
Empire State Building Associates L.L.C. | Participants | $ | 1,098,117,352 | |||||||||||||
Empire State Building Associates L.L.C. | Malkin Holdings LLC - Override | $ | 111,185,689 | $ | 2,398,963,334 | 53.3 | % | |||||||||
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250 West 57th Street | 250 West 57th Street Associates L.L.C. | Participants | $ | 129,049,163 | ||||||||||||
250 West 57th Street Associates L.L.C. | Malkin Holdings LLC - Override | $ | 10,016,940 | |||||||||||||
Fisk Building Associates L.L.C. | Participants - 45% Group | $ | 26,252,491 | |||||||||||||
Fisk Building Associates L.L.C. | Participants - 55% Group | $ | 63,497,637 | |||||||||||||
Fisk Building Associates L.L.C. | Override | $ | 11,626,245 | |||||||||||||
Fisk Building Associates L.L.C. | Malkin Family - Override | $ | 11,626,245 | |||||||||||||
Fisk Building Associates L.L.C. | Malkin Holdings LLC - Override | $ | 15,264,325 | $ | 267,333,046 | 5.9 | % | |||||||||
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10 Bank Street | 1185 Bank L.L.C. | GP | $ | 200,528 | ||||||||||||
1185 Bank L.L.C. | Class 2 LP | ($ | 0 | ) | ||||||||||||
1185 Bank L.L.C. | Class 1 LPs | $ | 9,857,919 | $ | 10,058,447 | 0.2 | % | |||||||||
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500 Mamaroneck Ave | Malkin 500 Mamaroneck Avenue L.P. | Class A LPs | $ | 4,440,800 | ||||||||||||
Malkin 500 Mamaroneck Avenue L.P. | Class B LP | $ | 0 | |||||||||||||
Malkin 500 Mamaroneck Avenue L.P. | GP | $ | 44,857 | |||||||||||||
Viviane Paris, LLC | Viviane Paris, LLC | $ | 1,371,136 | |||||||||||||
Viviane Paris, LLC | Class B LP | $ | 124,083 | $ | 5,980,875 | 0.1 | % | |||||||||
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383 Main Ave | Fairfield Merritview SPE L.L.C. | GP | $ | 74,064 | ||||||||||||
Fairfield Merritview SPE L.L.C. | Class B LP | $ | 3,291,742 | |||||||||||||
Fairfield Merritview SPE L.L.C. | Class A LPs | $ | 4,040,614 | |||||||||||||
Fairfield Merritview SPE L.L.C. | Malkin Holdings LLC - Override | $ | 822,936 | $ | 8,229,356 | 0.2 | % | |||||||||
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100, 200 & 300 First Stamford Place | First Stamford Place SPE L.L.C. | Class A & A2 | $ | 1,312,901 | ||||||||||||
First Stamford Place SPE L.L.C. | GP | $ | 26,523 | |||||||||||||
First Stamford Place SPE L.L.C. | Class B | $ | 1,312,901 | |||||||||||||
Fairfax First Stamford SPE L.L.C. | Fairfax First Stamford SPE L.L.C. | $ | 2,170,704 | |||||||||||||
Fairfax First Stamford SPE L.L.C. | Malkin Holdings LLC - Override | $ | 241,189 | |||||||||||||
Merrifield First Stamford SPE L.L.C. | Merrifield First Stamford SPE L.L.C. - 55% Members | $ | 1,193,887 | |||||||||||||
Merrifield First Stamford SPE L.L.C. | Merrifield First Stamford SPE L.L.C. - 45% Members | $ | 488,408 | |||||||||||||
Merrifield First Stamford SPE L.L.C. | PLM - Override | $ | 241,189 | |||||||||||||
Merrifield First Stamford SPE L.L.C. | PLMalkin Family 9 LLC - Override | $ | 244,204 | |||||||||||||
Merrifield First Stamford SPE L.L.C. | Override | $ | 244,204 | $ | 7,476,113 | 0.2 | % | |||||||||
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10 Union Square | New York Union Square Retail L.P. | GP | $ | 290,926 | ||||||||||||
New York Union Square Retail L.P. | Class B LP | $ | 14,400,813 | |||||||||||||
New York Union Square Retail L.P. | Class A LPs | $ | 14,400,813 | $ | 29,092,552 | 0.6 | % | |||||||||
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Metro Center | One Station Place, Limited Partnership | GP | $ | 369,701 | ||||||||||||
One Station Place, Limited Partnership | Class A LP | $ | 3,327,305 | |||||||||||||
One Station Place, Limited Partnership | Class B LP | $ | 33,273,054 | $ | 36,970,060 | 0.8 | % | |||||||||
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103-107 Main Street | Westport Main Street Retail L.L.C. | Manager | $ | 49,234 | ||||||||||||
Westport Main Street Retail L.L.C. | Class B Members | $ | 0 | |||||||||||||
Westport Main Street Retail L.L.C. | Class A Members | $ | 4,874,155 | $ | 4,923,389 | 0.1 | % | |||||||||
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66-99 Main Street | Malkin Co-Investor Capital L.P. | GP | $ | 81,310 | ||||||||||||
Malkin Co-Investor Capital L.P. | Class B LPs | $ | 0 | |||||||||||||
Malkin Co-Investor Capital L.P. | Class A LPs | $ | 8,049,642 | |||||||||||||
Peter L. Malkin | Peter L. Malkin | $ | 3,712,548 | |||||||||||||
New Soundview Plazza Associates, Limited Partnership | LP | $ | 3,526,919 | $ | 15,370,419 | 0.3 | % | |||||||||
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77 West 55th Street | Malkin East West Retail Portfolio L.P. | GP | $ | 295,772 | ||||||||||||
Malkin East West Retail Portfolio L.P. | Class B LP | $ | 14,640,727 | |||||||||||||
Malkin East West Retail Portfolio L.P. | Class A LPs | $ | 14,640,727 | $ | 29,577,227 | 0.7 | % | |||||||||
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170 East 8th Street | 1185 Gotham L.L.C. | GP | $ | 258,135 | ||||||||||||
1185 Gotham L.L.C. | Class 2 LP | ($ | 0 | ) | ||||||||||||
1185 Gotham L.L.C. | Class 1 LPs | $ | 12,689,821 | $ | 12,947,955 | 0.3 | % | |||||||||
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B.B.S.F., L.L.C. | Allocations to Investors Pending | Allocations to Investors Pending | $ | 14,600,000 | $ | 14,600,000 | 0.3 | % | ||||||||
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Malkin Holdings, LLC (Ex Overrides) | $ | 5,896,278 | $ | 5,896,278 | 0.1 | % | ||||||||||
Malkin Properties | $ | 4,400,000 | $ | 4,400,000 | 0.1 | % | ||||||||||
Malkin Construction Corp. | $ | 5,875,000 | $ | 5,875,000 | 0.1 | % | ||||||||||
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Total Value of Equity Interests | $ | 4,500,083,545 | $ | 4,500,083,545 | 100.0 | % | ||||||||||
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Overrides | $ | 261,547,364 |
Malkin Holdings LLC Equity Waterfall
Property / Entity | Legal Entity | Capital Override ($) | Class A | Class B (1) | ||||||||||
112-122 West 34th Street | 112 West 34th Street Company L.L.C. | $ | 6,852,029 | $ | 6,420,352 | $ | 431,678 | |||||||
112-122 West 34th Street | 112 West 34th Street Associates L.L.C. | 14,938,175 | 14,085,837 | 852,338 | ||||||||||
1350 Broadway | 1350 Broadway Associates L.L.C. | 14,465,609 | 13,554,275 | 911,333 | ||||||||||
1400 Broadway | 1400 Broadway Associates L.L.C. | 12,795,075 | 11,988,985 | 806,090 | ||||||||||
501 Seventh Avenue | Seventh & 37th Building Associates L.L.C. | 4,814,618 | 4,511,297 | 303,321 | ||||||||||
501 Seventh Avenue | 501 Seventh Avenue Associates L.L.C. | 5,163,021 | 4,837,751 | 325,270 | ||||||||||
1359 Broadway | Marlboro Building Associates L.L.C. | 9,344,093 | 8,755,415 | 588,678 | ||||||||||
One Grand Central Place | 60 East 42nd St. Associates L.L.C. | 28,599,230 | 27,315,215 | 1,284,016 | ||||||||||
One Grand Central Place | Lincoln Building Associates L.L.C. | 27,044,435 | 27,044,435 | 0 | ||||||||||
Empire State Building, 350 Fifth Ave | Empire State Building Associates L.L.C. | 111,185,689 | 109,901,674 | 1,284,016 | ||||||||||
250 West 57th Street | 250 West 57th Street Associates L.L.C. | 10,016,940 | 9,385,873 | 631,067 | ||||||||||
250 West 57th Street | Fisk Building Associates L.L.C. | 15,264,325 | 14,611,377 | 652,948 | ||||||||||
383 Main Ave | Fairfield Merritview SPE L.L.C. | 822,936 | 771,091 | 51,845 | ||||||||||
100, 200 & 300 First Stamford Place | Fairfax First Stamford SPE L.L.C. | 241,189 | 225,994 | 15,195 | ||||||||||
Total Override Value | $ | 261,547,364 | $ | 253,409,570 | $ | 8,137,794 | ||||||||
Malkin Holdings LLC (Ex-Overrides) | 5,896,278 | 5,524,812 | 371,466 | |||||||||||
Equity Value of Malkin Holdings LLC | $ | 258,934,383 | $ | 8,509,260 | ||||||||||
% Ownership in REIT | 5.754 | % | 0.189 | % | ||||||||||
Total Equity Value of Malkin Holdings LLC | $ | 267,443,642 | ||||||||||||
% Ownership in REIT | 5.943 | % |
(1) | The lesser of 6.3% of override and CPI adjusted cap of $1,150,000 ($1,284,016 as of September 30, 2011). |
112 West 34th Street Equity Value
112 West 34th Street Associates L.L.C. (112-120 Ground Lessee) (122 Fee Owner & Sublessee) | 112 West 34th Street Company L.L.C. (Operating Sublessee) | Midpoint Consolidated | Low Consolidated | High Consolidated | ||||||||||||||||||||
Property Value | $ | 384,100,000 | $ | 365,000,000 | - | $ | 403,000,000 | |||||||||||||||||
Less: Shared Debt Obligations | (85,394,903 | ) | (85,394,903 | ) | - | (85,394,903 | ) | |||||||||||||||||
Less: PV of Base Rent | (10,100,000 | ) | (10,100,000 | ) | - | (10,100,000 | ) | |||||||||||||||||
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Total Allocable Value | $ | 144,302,549 | $ | 144,302,549 | $ | 288,605,097 | $ | 269,505,097 | - | $ | 307,505,097 | |||||||||||||
Less: After-Tax PV of Supervisory Fees | (520,797 | ) | (655,606 | ) | (1,176,403 | ) | (1,176,403 | ) | - | (1,176,403 | ) | |||||||||||||
Less: Unshared Debt Obligations | 0 | (3,778,097 | ) | (3,778,097 | ) | (3,778,097 | ) | - | (3,778,097 | ) | ||||||||||||||
Plus: PV of Base Rent | 10,100,000 | 0 | 10,100,000 | 10,100,000 | - | 10,100,000 | ||||||||||||||||||
Amount to Allocate for Capital Transaction | $ | 153,881,751 | $ | 139,868,846 | $ | 293,750,597 | $ | 274,650,597 | - | $ | 312,650,597 | |||||||||||||
Allocation Detail: | ||||||||||||||||||||||||
112 West 34th Street Company L.L.C. | 50% LMH (master partner) | $ | 66,508,408 | $ | 66,508,408 | $ | 61,972,158 | - | $ | 70,997,158 | ||||||||||||||
112 West 34th Street Company L.L.C. | 23% of PLM group not subject to override | 30,593,868 | 30,593,868 | 28,507,193 | - | 32,658,693 | ||||||||||||||||||
112 West 34th Street Company L.L.C. | 27% of PLM group subject to override | 18,497,270 | 18,497,270 | 17,272,483 | - | 19,709,233 | ||||||||||||||||||
112 West 34th Street Company L.L.C. | Wien - Override | 16,127,102 | 16,127,102 | 14,993,040 | - | 17,249,290 | ||||||||||||||||||
112 West 34th Street Company L.L.C. | Override | 1,290,168 | 1,290,168 | 1,199,443 | - | 1,379,943 | ||||||||||||||||||
112 West 34th Street Company L.L.C. | Malkin Holdings LLC - Override | 6,852,029 | 6,852,029 | 6,374,529 | - | 7,324,529 | ||||||||||||||||||
112 West 34th Street Associates L.L.C. | 112 West 34th Street Associates L.L.C. | $ | 138,943,576 | 138,943,576 | 130,348,576 | - | 147,448,576 | |||||||||||||||||
112 West 34th Street Associates L.L.C. | Malkin Holdings LLC - Override | 14,938,175 | 14,938,175 | 13,983,175 | - | 15,883,175 | ||||||||||||||||||
Total | $ | 153,881,751 | $ | 139,868,846 | $ | 293,750,597 | $ | 274,650,597 | - | $ | 312,650,597 |
112 West 34 St. Waterfall
Amount to allocate for capital transaction | $ | 293,750,597 | ||||||||||
112 West 34th Street Company L.L.C. | 112 West 34th Street Associates L.L.C. | |||||||||||
139,868,846 | 153,881,751 | |||||||||||
112 West 34th Street Company L.L.C. | 139,868,846 | |||||||||||
Breakpoint | 2,828,258 | |||||||||||
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Net for override | 137,040,588 | |||||||||||
Override to MH | 6,852,029 | |||||||||||
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Net to Investors | $ | 133,016,817 | ||||||||||
50% LMH (master partner) | 23% of PLM group not subject to override | 27% of PLM group subject to override | ||||||||||
Allocation | 66,508,408 | 30,593,868 | 35,914,540 | |||||||||
Cumulative priority | 0 | |||||||||||
Return of capital | 1,080,000 | |||||||||||
Net for override | 34,834,540 | |||||||||||
Override to Wien | 16,127,102 | |||||||||||
Wiessmann | 1,290,168 | |||||||||||
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To investors | 66,508,408 | 30,593,868 | 18,497,270 | |||||||||
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112 West 34th Street Associates L.L.C. | 153,881,751 | |||||||||||
Return of capital | 4,500,000 | |||||||||||
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Net for override | 149,381,751 | |||||||||||
Override to MH | 14,938,175 | |||||||||||
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Net to Investors | $ | 138,943,576 |
* | Does not include 2nd tier override override to MH from 6.3% of investors. |
1333 Broadway Associates L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||
Property Value | $ | 189,000,000 | $ | 180,000,000 | - | $ | 198,000,000 | |||||||
Less: Shared Debt Obligations | (71,200,000 | ) | (71,200,000 | ) | - | (71,200,000 | ) | |||||||
Plus: Excess Cash | 19,000,348 | 19,000,348 | - | 19,000,348 | ||||||||||
Less: After-Tax PV of Supervisory Fees | (378,585 | ) | (378,585 | ) | - | (378,585 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 136,421,763 | $ | 127,421,763 | - | $ | 145,421,763 |
1350 Broadway Associates L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 186,000,000 | $ | 177,000,000 | - | $ | 195,000,000 | |||||||||
Less: Shared Debt Obligations | (40,427,335 | ) | (40,427,335 | ) | - | (40,427,335 | ) | |||||||||
Less: After-Tax PV of Supervisory Fees | (530,481 | ) | (530,481 | ) | - | (530,481 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 145,042,184 | $ | 136,042,184 | - | $ | 154,042,184 | |||||||||
Allocation Detail: | ||||||||||||||||
1350 Broadway Associates L.L.C. | Peter L. Malkin Group | $ | 58,055,484 | $ | 54,455,484 | - | $ | 61,655,484 | ||||||||
1350 Broadway Associates L.L.C. | Malkin Holdings LLC - Override | 14,465,609 | 13,565,609 | - | 15,365,609 | |||||||||||
1350 Broadway Associates L.L.C. | David M. Baldwin Group | 72,521,092 | 68,021,092 | - | 77,021,092 | |||||||||||
Total | $ | 145,042,184 | $ | 136,042,184 | - | $ | 154,042,184 |
1350 Broadway Associates L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 145,042,184 | ||||||
DMB Group | PLM Group | |||||||
Allocation to group | $ | 72,521,092 | $ | 72,521,092 | ||||
Return of capital | 193,049 | |||||||
|
| |||||||
Net for override | 72,328,043 | |||||||
Malkin Holdings override (20.0%) | 14,465,609 | |||||||
Net to Investors | $ | 72,521,092 | $ | 58,055,484 |
1400 Broadway Associates L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||
Property Value | $ | 331,000,000 | $ | 314,000,000 | - | $ | 348,000,000 | |||||||
Less: Shared Debt Obligations | (71,300,000 | ) | (71,300,000 | ) | - | (71,300,000 | ) | |||||||
Less: After-Tax PV of Supervisory Fees | (1,848,503 | ) | (1,848,503 | ) | - | (1,848,503 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 257,851,497 | $ | 240,851,497 | - | $ | 274,851,497 | |||||||
Allocation Detail: | ||||||||||||||
Anthony E. Malkin | $ | 58,300,900 | $ | 54,465,275 | - | $ | 62,136,525 | |||||||
Peter L. Malkin | 122,528,211 | 114,453,211 | - | 130,603,211 | ||||||||||
LMH 1400 LLC | 61,264,106 | 57,226,606 | - | 65,301,606 | ||||||||||
Malkin Holdings LLC - Override | 12,795,075 | 11,945,075 | - | 13,645,075 | ||||||||||
Peter L. Malkin Family 5 LLC - Override | 1,481,603 | 1,380,665 | - | 1,582,540 | ||||||||||
Override | 1,481,603 | 1,380,665 | - | 1,582,540 | ||||||||||
Total | $ | 257,851,497 | $ | 240,851,497 | - | $ | 274,851,497 |
1400 Broadway Associates L.L.C. Waterfall
Amount to allocate for capital transaction | $ | 257,851,497 | ||||||||||||||
Split among groups | Total | AEM as agent for 2 groups 25% | PLM as agent 50% | LMH 1400 LLC 25% | ||||||||||||
Allocation to group | $ | 1,000,000 | $ | 175,000 | $ | 650,000 | $ | 175,000 | ||||||||
300,000 | 150,000 | 0 | 150,000 | |||||||||||||
650,000 | 162,500 | 325,000 | 162,500 | |||||||||||||
|
| |||||||||||||||
Net subject to override | 255,901,497 | |||||||||||||||
MH override | 12,795,075 | |||||||||||||||
|
| |||||||||||||||
Balance allocated to investors | 243,106,422 | 60,776,606 | 121,553,211 | 60,776,606 | ||||||||||||
|
| |||||||||||||||
Total to investors | $ | 61,264,106 | $ | 122,528,211 | $ | 61,264,106 | ||||||||||
2nd override | ||||||||||||||||
20% of AEM 25% group | $ | 12,252,821 | ||||||||||||||
Threshold | 400,000 | |||||||||||||||
|
| |||||||||||||||
Net for 2nd override | 11,852,821 | |||||||||||||||
PLM Family 5 LLC | 1,481,603 | |||||||||||||||
Override | 1,481,603 | |||||||||||||||
Net to investors of 20% group | 9,289,616 | |||||||||||||||
80% of 25% group | 49,011,284 | |||||||||||||||
Net to investors | $ | 58,300,900 | $ | 122,528,211 | $ | 61,264,106 |
501 Seventh Avenue Equity Value
Seventh & 37th Building Associates L.L.C. (Fee Owner) | 501 Seventh Avenue Associates L.L.C. (Operating Lessee) | Midpoint Consolidated | Low Consolidated | High Consolidated | ||||||||||||||||||||
Property Value | $ | 159,000,000 | $ | 151,000,000 | - | $ | 167,000,000 | |||||||||||||||||
Less: Shared Debt Obligations | (48,414,235 | ) | (48,414,235 | ) | - | (48,414,235 | ) | |||||||||||||||||
Less: PV of Base Rent | (4,000,000 | ) | (4,000,000 | ) | - | (4,000,000 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Allocable Value | 53,292,882 | 53,292,882 | 106,585,765 | 98,585,765 | - | 114,585,765 | ||||||||||||||||||
Less: After-Tax PV of Supervisory Fees | (421,428 | ) | (686,671 | ) | (1,108,100 | ) | (1,108,100 | ) | - | (1,108,100 | ) | |||||||||||||
Less: Unshared Debt Obligations | (819,876 | ) | 0 | (819,876 | ) | (819,876 | ) | - | (819,876 | ) | ||||||||||||||
Plus: PV of Base Rent | 4,000,000 | 0 | 4,000,000 | 4,000,000 | - | 4,000,000 | ||||||||||||||||||
Amount to Allocate for Capital Transaction | $ | 56,051,578 | $ | 52,606,211 | $ | 108,657,789 | $ | 100,657,789 | - | $ | 116,657,789 | |||||||||||||
Allocation Detail: | ||||||||||||||||||||||||
Seventh & 37th Building Associates L.L.C. | Participants | $ | 51,236,960 | $ | 51,236,960 | $ | 47,604,127 | - | $ | 54,869,793 | ||||||||||||||
Seventh & 37th Building Associates L.L.C. | Malkin Holdings LLC - Override | 4,814,618 | 4,814,618 | 4,447,451 | - | 5,181,784 | ||||||||||||||||||
501 Seventh Avenue Associates L.L.C. | Participants | $ | 47,443,190 | 47,443,190 | 43,843,190 | - | 51,043,190 | |||||||||||||||||
501 Seventh Avenue Associates L.L.C. | Malkin Holdings LLC - Override | 5,163,021 | 5,163,021 | 4,763,021 | - | 5,563,021 | ||||||||||||||||||
Total | $ | 56,051,578 | $ | 52,606,211 | $ | 108,657,789 | $ | 100,657,789 | - | $ | 116,657,789 |
501 Seventh Avenue Waterfall
Amount to Allocate for Capital Transaction | $ | 108,657,789 | ||||||
501 Seventh Avenue Associates L.L.C. | Seventh & 37th Building Associates L.L.C. | |||||||
$ | 52,606,211 | $ | 56,051,578 | |||||
501 Seventh Avenue Associates LLC | $ | 52,606,211 | ||||||
Total NPV of Malkin Holdings override | 5,163,021 | |||||||
Net to Investors | $ | 47,443,190 | ||||||
Seventh & 37th Building Associates | $ | 56,051,578 | ||||||
Return of capital for VC | (3,600,000 | ) | ||||||
|
| |||||||
Net for override | 52,451,578 | |||||||
Malkin Holdings override | 4,814,618 | |||||||
Net to Investors | $ | 51,236,960 |
Marlboro Building Associates L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 192,000,000 | $ | 182,000,000 | - | $ | 202,000,000 | |||||||||
Less: Shared Debt Obligations | (48,398,090 | ) | (48,398,090 | ) | - | (48,398,090 | ) | |||||||||
Less: After-Tax PV of Supervisory Fees | (752,901 | ) | (752,901 | ) | - | (752,901 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 142,849,010 | $ | 132,849,010 | - | $ | 152,849,010 | |||||||||
Allocation Detail: | ||||||||||||||||
Participants | $ | 133,504,917 | $ | 124,175,905 | - | $ | 142,833,929 | |||||||||
Malkin Holdings LLC - Override | 9,344,093 | 8,673,105 | - | 10,015,080 | ||||||||||||
Total | $ | 142,849,010 | $ | 132,849,010 | - | $ | 152,849,010 |
Marlboro Building Associates L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 142,849,010 | ||
Marlboro Building Associates LLC | 142,849,010 | |||
Return of capital | 3,590,222 | |||
|
| |||
Net for Override | 139,258,788 | |||
MH Override (VC) | 9,344,093 | |||
|
| |||
Net to Investors | $ | 133,504,917 |
60 East 42nd St. Associates L.L.C. Equity Value
60 East 42nd St. Associates L.L.C. (Fee Owner) | Lincoln Building Associates L.L.C. (Operating Lessee) | Midpoint Consolidated | Low Consolidated | High Consolidated | ||||||||||||||||||||||
Property Value | $ | 655,000,000 | $ | 622,000,000 | - | $ | 688,000,000 | |||||||||||||||||||
Less: Shared Debt Obligations | (92,614,558 | ) | (92,614,558 | ) | - | (92,614,558 | ) | |||||||||||||||||||
Less: PV of Base Rent | (14,000,000 | ) | (14,000,000 | ) | - | (14,000,000 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Allocable Value | 274,192,721 | 274,192,721 | 548,385,442 | 515,385,442 | - | 581,385,442 | ||||||||||||||||||||
Less: After-Tax PV of Supervisory Fees | (1,220,421 | ) | (2,739,533 | ) | (3,959,954 | ) | (3,959,954 | ) | - | (3,959,954 | ) | |||||||||||||||
Less: Unpaid Cash Override | 0 | (608,835 | ) | (608,835 | ) | (608,835 | ) | - | (608,835 | ) | ||||||||||||||||
Plus: PV of Base Rent | 14,000,000 | 0 | 14,000,000 | 14,000,000 | - | 14,000,000 | ||||||||||||||||||||
Amount to Allocate for Capital Transaction | $ | 286,972,300 | $ | 270,844,353 | $ | 557,816,654 | $ | 524,816,654 | - | $ | 590,816,654 | |||||||||||||||
Allocation Detail: | ||||||||||||||||||||||||||
60 East 42nd St. Associates L.L.C. | Participants | $ | 258,373,070 | $ | 258,373,070 | $ | 243,523,070 | - | $ | 273,223,070 | ||||||||||||||||
60 East 42nd St. Associates L.L.C. | Malkin Holdings LLC - Override | 28,599,230 | 28,599,230 | 26,949,230 | - | 30,249,230 | ||||||||||||||||||||
Lincoln Building Associates L.L.C. | Participants | $ | 243,799,918 | 243,799,918 | 228,949,918 | - | 258,649,918 | |||||||||||||||||||
Lincoln Building Associates L.L.C. | Malkin Holdings LLC - Override | 27,044,435 | 27,044,435 | 25,394,435 | 28,694,435 | |||||||||||||||||||||
Total | $ | 286,972,300 | $ | 270,844,353 | $ | 557,816,654 | $ | 524,816,654 | - | $ | 590,816,654 |
60 East 42nd St. Associates L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 557,816,654 | ||||||
Lincoln Building Associates L.L.C. | 60 East 42nd St. Associates L.L.C. | |||||||
Total Allocation | $ | 270,844,353 | $ | 286,972,300 | ||||
Lincoln Building Associates L.L.C. | $ | 270,844,353 | ||||||
MH Override | 27,044,435 | |||||||
|
| |||||||
Net to Investors | $ | 243,799,918 | ||||||
60 East 42nd Street Associates L.L.C. | $ | 286,972,300 | ||||||
Threshold | 980,000 | |||||||
|
| |||||||
Net for Override | 285,992,300 | |||||||
MH Override | 28,599,230 | |||||||
|
| |||||||
Net to Investors | $ | 258,373,070 |
Empire State Building Equity Value
Empire State Land Associates L.L.C. (Fee Owner) | Empire State Building Company L.L.C. (Operating Lessee) | Midpoint Consolidated | Low Consolidated | High Consolidated | ||||||||||||||||||||||
Property Value | $ | 2,520,000,000 | $ | 2,394,000,000 | - | $ | 2,646,000,000 | |||||||||||||||||||
Less: Shared Debt Obligations | (98,500,000 | ) | (98,500,000 | ) | - | (98,500,000 | ) | |||||||||||||||||||
Less: PV of Base Rent | (81,000,000 | ) | (81,000,000 | ) | - | (81,000,000 | ) | |||||||||||||||||||
Plus: Excess Cash | 47,026,456 | 47,026,456 | - | 47,026,456 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total Allocable Value | 1,193,763,228 | 1,193,763,228 | 2,387,526,456 | 2,261,526,456 | - | 2,513,526,456 | ||||||||||||||||||||
Less: After-Tax PV of Supervisory Fees | (4,960,186 | ) | (4,102,936 | ) | (9,063,122 | ) | (9,063,122 | ) | - | (9,063,122 | ) | |||||||||||||||
Less: Unshared Debt Obligations | (60,500,000 | ) | 0 | (60,500,000 | ) | (60,500,000 | ) | - | (60,500,000 | ) | ||||||||||||||||
Plus: PV of Base Rent | 81,000,000 | 0 | 81,000,000 | 81,000,000 | - | 81,000,000 | ||||||||||||||||||||
Amount to Allocate for Capital Transaction | $ | 1,209,303,042 | $ | 1,189,660,292 | $ | 2,398,963,334 | $ | 2,272,963,334 | - | $ | 2,524,963,334 | |||||||||||||||
Allocation Detail: | ||||||||||||||||||||||||||
Empire State Building Co L.L.C. | Master Partners | $ | 907,115,973 | $ | 907,115,973 | $ | 859,078,473 | - | $ | 955,153,473 | ||||||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 10% Investors | 89,674,522 | 89,674,522 | 84,949,522 | - | 94,399,522 | ||||||||||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 10% Override | 29,291,507 | 29,291,507 | 27,716,507 | - | 30,866,507 | ||||||||||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 5% Investors | 44,837,261 | 44,837,261 | 42,474,761 | - | 47,199,761 | ||||||||||||||||||||
Empire State Building Co L.L.C. | PLM 4-2-71 JV, 5% Override | 14,645,754 | 14,645,754 | 13,858,254 | - | 15,433,254 | ||||||||||||||||||||
Empire State Building Co L.L.C. | 1273 Realty Company Investors | 50,528,432 | 50,528,432 | 47,896,213 | - | 53,160,650 | ||||||||||||||||||||
Empire State Building Co L.L.C. | 1273 Realty Company - Override | 53,566,844 | 53,566,844 | 50,686,563 | - | 56,447,125 | ||||||||||||||||||||
Empire State Building Associates L.L.C. | Participants | $ | 1,098,117,352 | 1,098,117,352 | 1,041,072,194 | - | 1,155,162,511 | |||||||||||||||||||
Empire State Building Associates L.L.C. | Malkin Holdings LLC - Override | 111,185,689 | 111,185,689 | 105,230,848 | - | 117,140,531 | ||||||||||||||||||||
Total | $ | 1,209,303,042 | $ | 1,189,660,292 | $ | 2,398,963,334 | $ | 2,272,963,334 | - | $ | 2,524,963,334 |
Empire State Building Waterfall
Amount to allocate for capital transaction | $ | 2,398,963,334 | ||||||||||||||||||
Empire State Building Co L.L.C. | Empire State Building Associates L.L.C. | |||||||||||||||||||
Split Between ESBC and ESBA | $ | 1,189,660,292 | $ | 1,209,303,042 | ||||||||||||||||
Master Partners (not subject to any override) | PLM Joint Venture Ltd 4-2-71 | PLM Joint Venture Ltd 7-2-71 | 1273 Realty Company (portion subject to override) | 1273 Realty Company (portion not subject to override) | ||||||||||||||||
Empire State Building Co L.L.C. | ||||||||||||||||||||
Ownership % | 76.25 | % | 10.00 | % | 5.00 | % | 8.3125 | % | 0.4375 | % | ||||||||||
Allocation | 907,115,973 | 118,966,029 | 59,483,015 | 98,890,512 | 5,204,764 | |||||||||||||||
Return of capital | 1,800,000 | 900,000 | 1,496,250 | |||||||||||||||||
Priority | 0 | 0 | 0 | |||||||||||||||||
|
|
|
|
|
| |||||||||||||||
Subject to override | 117,166,029 | 58,583,015 | 97,394,262 | |||||||||||||||||
Override | 29,291,507 | 14,645,754 | ||||||||||||||||||
Override | 53,566,844 | |||||||||||||||||||
Net to Investors | $ | 907,115,973 | $ | 89,674,522 | $ | 44,837,261 | $ | 45,323,668 | $ | 5,204,764 | ||||||||||
Empire State Building Associates L.L.C. | ||||||||||||||||||||
1,209,303,042 | ||||||||||||||||||||
Return of Capital | 33,000,000 | |||||||||||||||||||
|
| |||||||||||||||||||
Net for Override | 1,176,303,042 | |||||||||||||||||||
MH Override (VC) | 111,185,689 | |||||||||||||||||||
Net to Investors | $ | 1,098,117,352 |
250 West 57th Equity Value
250 West 57th St. Associates L.L.C. (Fee Owner) | Fisk Building Associates L.L.C. (Operating Lessee) | Midpoint Consolidated | Low Consolidated | High Consolidated | ||||||||||||||||||||
Property Value | $ | 310,000,000 | $ | 295,000,000 | - | $ | 326,000,000 | |||||||||||||||||
Less: Shared Debt Obligations | (40,432,051 | ) | (40,432,051 | ) | - | (40,432,051 | ) | |||||||||||||||||
Less: PV of Base Rent | (10,000,000 | ) | (10,000,000 | ) | - | (10,000,000 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total Allocable Value | 129,783,974 | 129,783,974 | 259,567,949 | 244,567,949 | - | 275,567,949 | ||||||||||||||||||
Less: After-Tax PV of Supervisory Fees | (717,872 | ) | (729,588 | ) | (1,447,460 | ) | (1,447,460 | ) | - | (1,447,460 | ) | |||||||||||||
Less: Unpaid Cash Override | 0 | (787,443 | ) | (787,443 | ) | (787,443 | ) | - | (787,443 | ) | ||||||||||||||
Plus: PV of Base Rent | 10,000,000 | 0 | 10,000,000 | 10,000,000 | - | 10,000,000 | ||||||||||||||||||
Amount to Allocate for Capital Transaction | $ | 139,066,102 | $ | 128,266,943 | $ | 267,333,046 | $ | 252,333,046 | - | $ | 283,333,046 | |||||||||||||
Allocation Detail: | ||||||||||||||||||||||||
250 West 57th Street Associates L.L.C. | Participants | $ | 129,049,163 | $ | 0 | $ | 0 | - | $ | 0 | ||||||||||||||
250 West 57th Street Associates L.L.C. | Malkin Holdings LLC - Override | 10,016,940 | 0 | 0 | - | 0 | ||||||||||||||||||
Fisk Building Associates L.L.C. | Participants - 45% Group | $ | 26,252,491 | 26,252,491 | 24,809,678 | - | 27,791,491 | |||||||||||||||||
Fisk Building Associates L.L.C. | Participants - 55% Group | 63,497,637 | 63,497,637 | 59,785,137 | - | 67,457,637 | ||||||||||||||||||
Fisk Building Associates L.L.C. | Override | 11,626,245 | 11,626,245 | 10,904,839 | - | 12,395,745 | ||||||||||||||||||
Fisk Building Associates L.L.C. | Malkin Family - Override | 11,626,245 | 11,626,245 | 10,904,839 | - | 12,395,745 | ||||||||||||||||||
Fisk Building Associates L.L.C. | Malkin Holdings LLC - Override | 15,264,325 | 15,264,325 | 14,362,450 | - | 16,226,325 | ||||||||||||||||||
Total | $ | 139,066,102 | $ | 128,266,943 | $ | 128,266,943 | $ | 120,766,943 | - | $ | 136,266,943 |
250 West 57th Waterfall
Amount to allocate for capital transaction | $ | 267,333,046 | ||||||
Fisk Building Associates L.L.C. | 250 West 57th Street Associates L.L.C. | |||||||
$ | 128,266,943 | $ | 139,066,102 | |||||
Fisk Building Associates L.L.C.: | $ | 128,266,943 | ||||||
MH Override | 12,816,694 | |||||||
|
| |||||||
Net to investors | $ | 115,450,249 | ||||||
|
| |||||||
55% Group | 45% Group | |||||||
$ | 63,497,637 | $ | 51,952,612 | |||||
Unpaid priority | 0 | |||||||
Return of capital | 3,000,000 | |||||||
|
|
|
| |||||
Net for override | 48,952,612 | |||||||
MH override | 2,447,631 | |||||||
Malkin Family | 11,626,245 | |||||||
Override | 11,626,245 | |||||||
Net to Investors | $ | 63,497,637 | $ | 26,252,491 | ||||
250 West 57th Street Associates L.L.C.: | ||||||||
$ | 139,066,102 | |||||||
Return of capital | 7,200,000 | |||||||
|
| |||||||
Net for override (VC) | 131,866,102 | |||||||
MH override (VC) | 10,016,940 | |||||||
|
| |||||||
Net to Investors | $ | 129,049,163 |
1185 Gotham L.L.C. Equity Value
Gotham Midpoint | Gotham Low | Gotham High | ||||||||||||
Property Value | $ | 33,000,000 | $ | 31,000,000 | - | $ | 35,000,000 | |||||||
Less: Shared Debt Obligations | (19,866,346 | ) | (19,866,346 | ) | - | (19,866,346 | ) | |||||||
Less: After-Tax PV of Supervisory Fees | (185,699 | ) | (185,699 | ) | - | (185,699 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 12,947,955 | $ | 10,947,955 | - | $ | 14,947,955 | |||||||
Allocation Detail: | ||||||||||||||
GP | $ | 258,135 | $ | 218,262 | - | $ | 295,386 | |||||||
Class 1 LPs | 12,689,821 | 10,729,693 | - | 14,587,942 | ||||||||||
Total | $ | 12,947,955 | $ | 10,947,955 | - | $ | 14,947,955 |
1185 Bank L.L.C. Equity Value
Bank Street Midpoint | Bank Street Low | Bank Street High | ||||||||||||
Property Value | $ | 45,000,000 | $ | 43,000,000 | - | $ | 47,000,000 | |||||||
Less: Shared Debt Obligations | (34,755,853 | ) | (34,755,853 | ) | - | (34,755,853 | ) | |||||||
Less: After-Tax PV of Supervisory Fees | (185,700 | ) | (185,700 | ) | - | (185,700 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 10,058,447 | $ | 8,058,447 | - | $ | 12,058,447 | |||||||
Allocation Detail: | ||||||||||||||
GP | $ | 200,528 | $ | 160,656 | - | $ | 238,287 | |||||||
Class 1 LPs | 9,857,919 | 7,897,792 | - | 11,768,026 | ||||||||||
Total | $ | 10,058,447 | $ | 8,058,447 | - | $ | 12,058,447 |
1185 Gotham L.L.C. and 1185 Bank L.L.C. Waterfall
Gotham Equity Value | $ | 12,947,955 | ||||||||||
Bank Street Equity Value | 10,058,447 | |||||||||||
|
| |||||||||||
Amount to Allocate for Capital Transaction | $ | 23,006,402 | ||||||||||
|
| |||||||||||
Class 1 LPs | GP | Class 2 LPs | ||||||||||
98.006 | % | 1.994 | % | 0.000 | % | |||||||
Remaining capital | $ | 24,882,698 | $ | 506,160 | $ | 0 | ||||||
Priority | 1,118,218 | 22,747 | 0 | |||||||||
Return of capital | 21,429,521 | 435,916 | 0 | |||||||||
Remainder | (0 | ) | (0 | ) | (0 | ) | ||||||
Net to Investors | $ | 22,547,739 | $ | 458,663 | ($ | 0 | ) | |||||
| Pool Share of Class 2 (20.0%) |
| (0 | ) | ||||||||
| Allocated Pool |
| ($ | 0 | ) |
500 Mamaroneck Avenue L.P. Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 44,000,000 | $ | 42,000,000 | - | $ | 46,000,000 | |||||||||
Less: Shared Debt Obligations | (37,831,646 | ) | (37,831,646 | ) | - | (37,831,646 | ) | |||||||||
Less: After-Tax PV of Supervisory Fees | (187,479 | ) | (187,479 | ) | - | (187,479 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 5,980,875 | $ | 3,980,875 | - | $ | 7,980,875 | |||||||||
Allocation Detail: | ||||||||||||||||
Malkin 500 Mamaroneck Avenue L.P. | Class A LPs | $ | 4,440,800 | $ | 2,955,800 | - | $ | 5,925,800 | ||||||||
Malkin 500 Mamaroneck Avenue L.P. | Class B LP | 0 | 0 | - | 0 | |||||||||||
Malkin 500 Mamaroneck Avenue L.P. | GP | 44,857 | 29,857 | - | 59,857 | |||||||||||
Viviane Paris, LLC | Viviane Paris, LLC | 1,371,136 | 871,136 | - | 1,871,136 | |||||||||||
Viviane Paris, LLC | Class B LP | 124,083 | 124,083 | - | 124,083 | |||||||||||
Total | $ | 5,980,875 | $ | 3,980,875 | - | $ | 7,980,875 |
500 Mamaroneck Avenue L.P. Waterfall
Amount to Allocate for Capital Transaction | $ | 5,980,875 | ||||||||||
500 Mamaroneck Avenue L.P. | Viviane Paris, LLC | |||||||||||
Allocation % | 75.0 | % | 25.0 | % | ||||||||
Allocation $ | $ | 4,485,657 | $ | 1,495,219 | ||||||||
500 Mamaroneck Avenue L.P.: | ||||||||||||
Class A | GP | Class B | ||||||||||
Remaining capital | 13,500,000 | 136,364 | ||||||||||
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| |||||||
Return of capital | 4,440,800 | 44,857 | 0 | |||||||||
Priority | 0 | 0 | 0 | |||||||||
Remainder | 0 | 0 | 0 | |||||||||
Total | $ | 4,440,800 | $ | 44,857 | $ | 0 | ||||||
Viviane Paris, LLC: | ||||||||||||
Viviane Paris, LLC | Class B | |||||||||||
Remaining capital | 4,388,121 | 0 | ||||||||||
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| |||||||||
Return of capital | 1,495,219 | 0 | ||||||||||
Priority | 0 | 0 | ||||||||||
Priority | (744,500 | ) | (496,333 | ) | ||||||||
Remainder | 620,417 | 620,417 | ||||||||||
Total | $ | 1,371,136 | $ | 124,083 | ||||||||
| Pool Share of Class B (20.0%) |
| 24,817 | |||||||||
| Allocated Class B Pool |
| $ | 14,270 |
Fairfield Merritview SPE L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||
Property Value | $ | 40,000,000 | $ | 38,000,000 | - | $ | 42,000,000 | |||||||
Less: Shared Debt Obligations | (31,652,980 | ) | (31,652,980 | ) | - | (31,652,980 | ) | |||||||
Less: After-Tax PV of Supervisory Fees | (117,664 | ) | (117,664 | ) | - | (117,664 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 8,229,356 | $ | 6,229,356 | - | $ | 10,229,356 | |||||||
Allocation Detail: | ||||||||||||||
GP | $ | 74,064 | $ | 56,064 | - | $ | 92,064 | |||||||
Class B LP | 3,291,742 | 2,491,742 | - | 4,091,742 | ||||||||||
Class A LPs | 4,040,614 | 3,058,614 | - | 5,022,614 | ||||||||||
Malkin Holdings LLC - Override | 822,936 | 622,936 | - | 1,022,936 | ||||||||||
Total | $ | 8,229,356 | $ | 6,229,356 | - | $ | 10,229,356 |
Fairfield Merritview SPE L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 8,229,356 | ||||||||||||||
Class A | GP | Class B | Override | |||||||||||||
Original Capital | 8,800,000 | 89,000 | ||||||||||||||
Remaining Capital | 0 | 0 | ||||||||||||||
Return of Capital | 0 | 0 | ||||||||||||||
Priority @ 8.0% | 0 | 0 | 0 | |||||||||||||
Priority @ 12.0% | 0 | 0 | 0 | 0 | ||||||||||||
Remainder | 4,040,614 | 74,064 | 3,291,742 | 822,936 | ||||||||||||
Net to Investors | $ | 4,040,614 | $ | 74,064 | $ | 3,291,742 | $ | 822,936 | ||||||||
| Pool Share of Class B (20.0%) |
| 658,348 | |||||||||||||
| Allocated Pool |
| $ | 378,550 |
100, 200 & 300 First Stamford Place Equity Value
Fairfax First Stamford SPE L.L.C. (62.36% Co-Tenant) | Merrifield First Stamford SPE L.L.C. (Operating Lessee of 62.36% Co-Tenant) | First Stamford Place SPE L.L.C. (37.64% Co-Tenant) | Midpoint Consolidated | Low Consolidated | High Consolidated | |||||||||||||||||||||||
Property Value | $ | 257,990,000 | $ | 244,000,000 | - | $ | 270,000,000 | |||||||||||||||||||||
Less: Shared Debt Obligations | (250,000,000 | ) | (250,000,000 | ) | - | (250,000,000 | ) | |||||||||||||||||||||
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Total Allocable Value | 2,491,282 | 2,491,282 | 3,007,436 | 7,990,000 | (6,000,000 | ) | - | 20,000,000 | ||||||||||||||||||||
Less: After-Tax PV of Supervisory Fees | (79,388 | ) | (79,388 | ) | (355,110 | ) | (513,887 | ) | (513,887 | ) | - | (513,887 | ) | |||||||||||||||
Amount to Allocate for Capital Transaction | $ | 2,411,894 | $ | 2,411,894 | $ | 2,652,326 | $ | 7,476,113 | $ | 0 | - | $ | 19,486,113 | |||||||||||||||
Allocation Detail: | ||||||||||||||||||||||||||||
First Stamford Place SPE L.L.C. | Class A & A2 | $ | 1,312,901 | $ | 1,312,901 | $ | 0 | - | $ | 3,550,580 | ||||||||||||||||||
GP | 26,523 | 26,523 | 0 | - | 71,729 | |||||||||||||||||||||||
Class B | 1,312,901 | 1,312,901 | 0 | - | 3,550,580 | |||||||||||||||||||||||
Fairfax First Stamford SPE L.L.C. | Fairfax First Stamford SPE L.L.C. | $ | 2,170,704 | 2,170,704 | 0 | - | 5,540,951 | |||||||||||||||||||||
Malkin Holdings LLC - Override | 241,189 | 241,189 | 0 | - | 615,661 | |||||||||||||||||||||||
Merrifield First Stamford SPE L.L.C. | Merrifield First Stamford SPE L.L.C. - 55% Members | $ | 1,193,887 | 1,193,887 | 0 | - | 3,047,523 | |||||||||||||||||||||
Merrifield First Stamford SPE L.L.C. - 45% Members | 488,408 | 488,408 | 0 | - | 1,246,714 | |||||||||||||||||||||||
PLM - Override | 241,189 | 241,189 | 0 | - | 615,661 | |||||||||||||||||||||||
PLMalkin Family 9 LLC - Override | 244,204 | 244,204 | 0 | - | 623,357 | |||||||||||||||||||||||
Override | 244,204 | 244,204 | 0 | - | 623,357 | |||||||||||||||||||||||
Total | $ | 2,411,894 | $ | 2,411,894 | $ | 2,652,326 | $ | 7,476,113 | $ | 0 | - | $ | 19,486,113 |
100, 200 & 300 First Stamford Place Waterfall
Amount to allocate for capital transaction | $ | 7,476,113 | ||||||||||||||
First Stamford Place SPE L.L.C. | Fairfax First Stamford SPE L.L.C. / Merrifield First Stamford SPE L.L.C. | Fairfax First Stamford SPE L.L.C. | Merrifield First Stamford SPE | |||||||||||||
Allocation | 37.64% | 62.36% | 31.18% | 31.18% | ||||||||||||
$ | 2,652,326 | $ | 4,823,787 | $ | 2,411,894 | $ | 2,411,894 | |||||||||
First Stamford Place SPE L.L.C.: | ||||||||||||||||
Class A | GP | Class B | ||||||||||||||
Original capital | $ | 22,800,000 | $ | 230,303 | $ | 0 | ||||||||||
Remaining capital | 0 | 0 | 0 | |||||||||||||
Return of capital | 0 | 0 | 0 | |||||||||||||
Priority | 0 | 0 | 0 | |||||||||||||
Remainder | 1,312,901 | 26,523 | 1,312,901 | |||||||||||||
Total | $ | 1,312,901 | $ | 26,523 | $ | 1,312,901 | ||||||||||
Pool Share of Class B (20.0%) | 262,580 | |||||||||||||||
Fairfax First Stamford SPE L.L.C.: | ||||||||||||||||
$ | 2,411,894 | |||||||||||||||
Return of capital | 0 | |||||||||||||||
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| |||||||||||||||
Net for override | 2,411,894 | |||||||||||||||
MH override | 241,189 | |||||||||||||||
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| |||||||||||||||
Net to Investors | 2,170,704 | |||||||||||||||
Merrifield First Stamford SPE L.L.C.: |
| |||||||||||||||
$ | 2,411,894 | |||||||||||||||
45% | 55% | |||||||||||||||
Allocation | $ | 1,085,352.2 | $ | 1,326,541.5 | ||||||||||||
Return of capital | 0 | 0 | ||||||||||||||
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| |||||||||||||
Net | 1,085,352 | 1,326,542 | ||||||||||||||
10% to MP (PLM) | 108,535 | 132,654 | ||||||||||||||
22.5% to PLMalkin Family 9 LLC | 244,204 | 0 | ||||||||||||||
Override | 244,204 | 0 | ||||||||||||||
Net to Investors | $ | 488,408 | $ | 1,193,887 |
New York Union Square Retail L.P. Equity Value
Midpoint | Low | High | ||||||||||||
Property Value | $ | 51,000,000 | $ | 48,000,000 | - | $ | 54,000,000 | |||||||
Less: Shared Debt Obligations | (21,712,399 | ) | (21,712,399 | ) | - | (21,712,399 | ) | |||||||
Less: After-Tax PV of Supervisory Fees | (195,049 | ) | (195,049 | ) | - | (195,049 | ) | |||||||
Amount to Allocate for Capital Transaction | $ | 29,092,552 | $ | 26,092,552 | - | $ | 32,092,552 | |||||||
Allocation Detail: | ||||||||||||||
GP | $ | 290,926 | $ | 260,926 | - | $ | 320,926 | |||||||
Class B LP | 14,400,813 | 12,915,813 | - | 15,885,813 | ||||||||||
Class A LPs | 14,400,813 | 12,915,813 | - | 15,885,813 | ||||||||||
Total | $ | 29,092,552 | $ | 26,092,552 | - | $ | 32,092,552 |
New York Union Square Retail L.P. Waterfall
Amount to Allocate for Capital Transaction | $ | 29,092,552 | ||||||||||
Class A | GP | Class B | ||||||||||
Original capital | $ | 7,500,000 | $ | 75,758 | $ | 0 | ||||||
Remaining capital | 0 | 0 | 0 | |||||||||
Return of capital | 0 | 0 | 0 | |||||||||
Priority | 0 | 0 | 0 | |||||||||
Remainder | 14,400,813 | 290,926 | 14,400,813 | |||||||||
Net to Investors | $ | 14,400,813 | $ | 290,926 | $ | 14,400,813 | ||||||
| Pool Share of Class B (20.0%) |
| 2,880,163 | |||||||||
| Allocated Pool |
| $ | 1,944,110 |
One Station Place Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 138,000,000 | $ | 131,000,000 | - | $ | 145,000,000 | |||||||||
Less: Shared Debt Obligations | (101,029,940 | ) | (101,029,940 | ) | - | (101,029,940 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 36,970,060 | $ | 29,970,060 | - | $ | 43,970,060 | |||||||||
Allocation Detail: | ||||||||||||||||
GP | $ | 369,701 | $ | 299,701 | - | $ | 439,701 | |||||||||
Class A LP | 3,327,305 | 2,697,305 | - | 3,957,305 | ||||||||||||
Class B LP | 33,273,054 | 26,973,054 | - | 39,573,054 | ||||||||||||
Total | $ | 36,970,060 | $ | 29,970,060 | - | $ | 43,970,060 |
One Station Place Waterfall
Amount to Allocate for Capital Transaction | $ | 36,970,060 | �� | |||||||||
GP | Class A LP | Class BL P | ||||||||||
1.000 | % | 9.000 | % | 90.000 | % | |||||||
Net to Investors | $ | 369,701 | $ | 3,327,305 | $ | 33,273,054 |
Westport Main Street Retail L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 5,000,000 | $ | 4,800,000 | - | $ | 5,300,000 | |||||||||
Less: After-Tax PV of Supervisory Fees | (76,611 | ) | (76,611 | ) | - | (76,611 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 4,923,389 | $ | 4,723,389 | - | $ | 5,223,389 | |||||||||
Allocation Detail: | ||||||||||||||||
Manager | $ | 49,234 | $ | 47,234 | - | $ | 52,234 | |||||||||
Class B Members | 0 | 0 | - | 0 | ||||||||||||
Class A Members | 4,874,155 | 4,676,155 | - | 5,171,155 | ||||||||||||
Total | $ | 4,923,389 | $ | 4,723,389 | - | $ | 5,223,389 |
Westport Main Street Retail L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 4,923,389 | ||||||||||
Class A | GP | Class B | ||||||||||
Original Capital | $ | 9,119,000 | $ | 92,111 | $ | 0 | ||||||
Remaining Capital | 9,119,000 | 92,111 | 0 | |||||||||
Priority 1 | 805,485 | 8,136 | 0 | |||||||||
Return of Capital | 4,068,670 | 41,098 | 0 | |||||||||
Remainder | 0 | 0 | 0 | |||||||||
Net to Investors | $ | 4,874,155 | $ | 49,234 | $ | 0 | ||||||
Pool Share of Class B (20.0%) | 0 | |||||||||||
| Allocated Pool |
| $ | 0 |
Westport Retail Co-Investors L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||||
Property Value | $ | 25,000,000 | $ | 24,000,000 | - | $ | 26,000,000 | |||||||||||
Less: Shared Debt Obligations | (9,452,274 | ) | (9,452,274 | ) | - | (9,452,274 | ) | |||||||||||
Less: After-Tax PV of Supervisory Fees | (177,307 | ) | (177,307 | ) | - | (177,307 | ) | |||||||||||
Amount to Allocate for Capital Transaction | $ | 15,370,419 | $ | 14,370,419 | - | $ | 16,370,419 | |||||||||||
Allocation Detail: | ||||||||||||||||||
Malkin Co-Investor Capital L.P. | GP | $ | 81,310 | $ | 76,020 | - | $ | 86,600 | ||||||||||
Malkin Co-Investor Capital L.P. | Class B LPs | 0 | 0 | - | 0 | |||||||||||||
Malkin Co-Investor Capital L.P. | Class A LPs | 8,049,642 | 7,525,932 | - | 8,573,352 | |||||||||||||
Peter L. Malkin | Peter L. Malkin | 3,712,548 | 3,471,009 | - | 3,954,086 | |||||||||||||
New Soundview Plazza Associates, Limited Partnership | LP | 3,526,919 | 3,297,458 | - | 3,756,381 | |||||||||||||
Total | $ | 15,370,419 | $ | 14,370,419 | - | $ | 16,370,419 |
Westport Retail Co-Investors L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 15,370,419 | ||||||||||
Malkin Co-Investor Capital L.P. | Peter L. Malkin | New Soundview Plaza Associates, Limited Partnership | ||||||||||
Ownership % Split | 52.900 | % | 24.154 | % | 22.946 | % | ||||||
Ownership $ Split | 8,130,952 | 3,712,548 | 3,526,919 | |||||||||
Malkin Co-Investor Capital L.P.: | Class A | GP | Class B | |||||||||
Original capital | $ | 13,850,000 | $ | 139,899 | $ | 0 | ||||||
Remaining capital | 13,850,000 | 139,899 | 0 | |||||||||
Priority 1 | 2,575,057 | 26,011 | 0 | |||||||||
Return of capital | 5,474,585 | 55,299 | 0 | |||||||||
Priority 2 | 0 | 0 | 0 | |||||||||
Remainder | 0 | 0 | 0 | |||||||||
Net to Investors | $ | 8,049,642 | $ | 81,310 | $ | 0 | ||||||
| Pool Share of Class B (20.0%) |
| 0 | |||||||||
| Allocated Pool |
| $ | 0 |
East West Manhattan Retail Portfolio SPE L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||
Property Value | $ | 59,000,000 | $ | 56,000,000 | - | $ | 62,000,000 | |||||||||
Less: Shared Debt Obligations | (29,232,062 | ) | (29,232,062 | ) | - | (29,232,062 | ) | |||||||||
Less: After-Tax PV of Supervisory Fees | (190,711 | ) | (190,711 | ) | - | (190,711 | ) | |||||||||
Amount to Allocate for Capital Transaction | $ | 29,577,227 | $ | 26,577,227 | - | $ | 32,577,227 | |||||||||
Allocation Detail: | �� | |||||||||||||||
GP | $ | 295,772 | $ | 265,772 | - | $ | 325,772 | |||||||||
Class B LP | 14,640,727 | 13,155,727 | - | 16,125,727 | ||||||||||||
Class A LPs | 14,640,727 | 13,155,727 | - | 16,125,727 | ||||||||||||
Total | $ | 29,577,227 | $ | 26,577,227 | - | $ | 32,577,227 |
East West Manhattan Retail Portfolio SPE L.L.C. Waterfall
Amount to Allocate for Capital Transaction | $ | 29,577,227 | ||||||||||
Class A | GP | Class B | ||||||||||
Original Capital | $ | 9,900,000 | $ | 100,000 | $ | 0 | ||||||
Remaining Capital | 0 | 0 | 0 | |||||||||
Return of Capital | 0 | 0 | 0 | |||||||||
Priority | 0 | 0 | 0 | |||||||||
Remainder | 14,640,727 | 295,772 | 14,640,727 | |||||||||
Net to Investors | $ | 14,640,727 | $ | 295,772 | $ | 14,640,727 | ||||||
| Pool Share of Class B (20.0%) |
| 2,928,145 | |||||||||
| Allocated Pool |
| $ | 1,976,498 |
B.B.S.F., L.L.C. Equity Value
Midpoint | Low | High | ||||||||||||||||
Property Value | $ | 14,600,000 | $ | 14,000,000 | - | $ | 15,000,000 | |||||||||||
Amount to Allocate for Capital Transaction | $ | 14,600,000 | $ | 14,000,000 | - | $ | 15,000,000 | |||||||||||
Allocation Detail: | ||||||||||||||||||
ARSA Associates | PLM Family 2000 LLC | $ | 6,915,786 | $ | 6,631,576 | - | $ | 7,105,260 | ||||||||||
ARSA Associates | Anthoney E. Malkin | 0 | 0 | - | 0 | |||||||||||||
PLM Family 2000 LLC | PLM Family 2000 LLC | 7,684,214 | 7,368,424 | - | 7,894,740 | |||||||||||||
Total | $ | 14,600,000 | $ | 14,000,000 | - | $ | 15,000,000 |
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Business Enterprise Valuation | October 14, 2011 | |
Malkin Construction Corp. |
Confidential DRAFT – For Discussion Purposes Only
The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm to whom it is furnished by us.
Reproduction, publication, or dissemination of portions hereof may not be made without prior approval of Duff & Phelps, LLC.
Equity Value Conclusion | Malkin Construction Corp. |
Low | Mid | High | ||||||||||
Discounted Cash Flow Analysis | $ | 5,850,000 | $ | 6,250,000 | $ | 6,700,000 | ||||||
Selected Public Company Analysis | 5,000,000 | 5,500,000 | 6,000,000 | |||||||||
Enterprise Value Conclusion | $ | 5,425,000 | $ | 5,875,000 | $ | 6,350,000 | ||||||
Plus: Cash and Equivalents (1) | 0 | 0 | 0 | |||||||||
Less: Debt (1) | 0 | 0 | 0 | |||||||||
Equity Value | $ | 5,425,000 | $ | 5,875,000 | $ | 6,350,000 |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 1 of 6 |
Discounted Cash Flow Analysis | Malkin Construction Corp. |
2011E | 2012P | 2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | 10-Yr CAGR | ||||||||||||||||||||||||||||||||||||||
Revenue | $ | 53,566,220 | $ | 55,173,207 | $ | 56,828,403 | $ | 58,533,255 | $ | 60,289,253 | $ | 62,097,930 | $ | 63,960,868 | $ | 65,879,694 | $ | 67,856,085 | $ | 69,891,767 | 6.2 | % | ||||||||||||||||||||||||||
Growth | 40.4 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||||||||||||||||||||
EBITDA | 1,278,879 | 1,317,245 | 1,356,762 | 1,397,465 | 1,439,389 | 1,482,571 | 1,527,048 | 1,572,859 | 1,620,045 | 1,668,646 | 10-Yr. Avg | |||||||||||||||||||||||||||||||||||||
EBITDA Margin | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | 2.4 | % | ||||||||||||||||||||||||||
EBITDA Growth |
| 78.4 | % |
| 3.0 | % | 3.0 | % | 3.0 | % |
| 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | |||||||||||||||||||||||||
7/31-12/31 | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Interest and Taxes | $ | 767,109 | $ | 1,251,785 | $ | 1,286,219 | $ | 1,324,588 | $ | 1,364,311 | $ | 1,405,239 | $ | 1,447,396 | $ | 1,490,818 | $ | 1,535,542 | $ | 1,581,609 | ||||||||||||||||||||||||||||
Pro Forma Taxes @ 39.6% |
| (303,890 | ) | (495,895 | ) |
| (509,536 | ) |
| (524,736 | ) | (540,472 | ) | (556,685 | ) | (573,386 | ) | (590,588 | ) | (608,305 | ) | (626,554 | ) | |||||||||||||||||||||||||
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Net Operating Profit After Tax | 463,219 | 755,890 | 776,684 | 799,853 | 823,839 | 848,554 | 874,010 | 900,230 | 927,237 | 955,054 | ||||||||||||||||||||||||||||||||||||||
Depreciation | 184 | 65,460 | 70,543 | 72,877 | 75,078 | 77,332 | 79,652 | 82,041 | 84,503 | 87,038 | ||||||||||||||||||||||||||||||||||||||
Capital Expenditures | (58,300 | ) | (70,924 | ) | (73,052 | ) | (75,244 | ) | (77,501 | ) | (79,826 | ) | (82,221 | ) | (84,687 | ) | (87,228 | ) | (89,845 | ) | ||||||||||||||||||||||||||||
(Increase) Decrease in Working Capital | 31,202 | 6,428 | 6,621 | 6,819 | 7,024 | 7,235 | 7,452 | 7,675 | 7,906 | 8,143 | ||||||||||||||||||||||||||||||||||||||
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Free Cash Flow | $ | 436,305 | $ | 756,854 | $ | 780,795 | $ | 804,305 | $ | 828,440 | $ | 853,294 | $ | 878,893 | $ | 905,260 | $ | 932,418 | $ | 960,390 | ||||||||||||||||||||||||||||
Terminal Growth Rate | 3.00 | % | 3.00 | % | 3.00 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted Average Cost of Capital | 17.50 | % |
| 16.50 | % |
| 15.50 | % | ||||||||||||||||||||||||||||||||||||||||
Terminal Value | $ | 6,822,081 | $ | 7,327,420 | $ | 7,913,614 | ||||||||||||||||||||||||||||||||||||||||||
Present Value of Terminal Value | 1,660,762 | 1,922,482 | 2,239,170 | |||||||||||||||||||||||||||||||||||||||||||||
Present Value of Discrete Cash Flow | 4,207,666 | 4,336,575 | 4,472,931 | |||||||||||||||||||||||||||||||||||||||||||||
Concluded Enterprise Value Range (Rounded) | $ | 5,850,000 | $ | 6,250,000 | $ | 6,700,000 | ||||||||||||||||||||||||||||||||||||||||||
Implied Enterprise Value Multiples
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2011 EBITDA | $ | 1,278,879 | 4.6x | 4.9x | 5.2x | |||||||||||||||||||||||||||||||||||||||||||
2012 EBITDA | $ | 1,317,245 | 4.4x | 4.7x | 5.1x | |||||||||||||||||||||||||||||||||||||||||||
2011 Revenue | $ | 53,566,220 | 0.11x | 0.12x | 0.13x |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 2 of 6 |
Capital Expense Reclass
2008A | 2009A | 2010A | YTD 6/30/2010 | YTD 6/30/2011 | LTM 6/30/2011 | 2011E | ||||||||||||||||||||||
Computer Equipment PC/Laptop | 13,628 | 3,578 | 13,816 | 4,738 | 8,824 | 17,902 | $ | 31,500 | ||||||||||||||||||||
Computer Network/Server | 22,391 | 13,144 | 12,456 | 3,227 | 3,493 | 12,722 | 48,510 | |||||||||||||||||||||
Furniture & Fixtures | 4,794 | 0 | 0 | 0 | 105 | 105 | 1,000 | |||||||||||||||||||||
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Total Capital Expenses | $ | 40,813 | $ | 16,722 | $ | 26,272 | $ | 7,965 | $ | 12,422 | $ | 30,729 | $ | 81,010 | ||||||||||||||
Expense Reclass @ 0.0% | (34,691 | ) | (14,214 | ) | (22,331 | ) | (6,770 | ) | (10,559 | ) | (26,120 | ) | (68,859 | ) | ||||||||||||||
Capital Expenditures | 34,691 | 14,214 | 22,331 | 6,770 | 10,559 | 26,120 | 68,859 | |||||||||||||||||||||
Growth | (59.0 | %) | 57.1 | % | 56.0 | % | ||||||||||||||||||||||
as % of Total Fees | 0.1 | % | 0.1 | % | 0.1 | % | 0.0 | % | 0.0 | % | 0.1 | % | 0.1 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 3 of 6 |
Weighted Average Cost of Capital Analysis - Malkin Construction Corp.
Levered Beta | Discount Rate Range | Sources and Considerations | ||||||||
Unlevered Beta | 1.20 | 1.40 | Selected Public Companies and Cost of Capital Yearbook | |||||||
Debt % of Capital | 10.0 | % | 5.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Equity % of Capital | 90.0 | % | 95.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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Levered Beta | 1.28 | 1.44 | ||||||||
Levered Cost of Equity | ||||||||||
Risk-free Rate | 4.0 | % | 4.0 | % | Expected Long-Term Risk Free Rate | |||||
Levered Beta | 1.28 | 1.44 | See Above | |||||||
Market Risk Premium | 5.5 | % | 5.5 | % | Duff & Phelps Study | |||||
Small Stock Premium | 6.0 | % | 6.0 | % | Duff & Phelps Cost of Capital Study; SBBI Valuation Edition 2011 Yearbook | |||||
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Levered Cost of Equity | 17.0 | % | 17.9 | % | ||||||
Cost of Debt | ||||||||||
Cost of Long-term Debt | 5.0 | % | 5.0 | % | BBB Bond Rate | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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After-tax Cost of Debt | 3.0 | % | 3.0 | % | ||||||
Weighted Average Cost of Capital (WACC) | ||||||||||
Debt % of Capital | 10.0 | % | 5.0 | % | ||||||
Equity % of Capital | 90.0 | % | 95.0 | % | ||||||
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Calculated WACC | 15.6 | % | 17.2 | % | ||||||
Selected WACC Range | 16.50 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 4 of 6 |
Selected Public Company Analysis | Malkin Construction Corp. |
Enterprise Valuation Multiples | Valuation Summary | |||||||||||||
Metric | Public Company Range | Public Company Median | Selected Multiple Range | Company Performance | Enterprise Value Range | |||||||||
2011 EBITDA | 3.3x - 5.5x | 3.8x | 3.5x - 4.5x | $ | 1,278,879 | $4,476,075 - $5,754,953 | ||||||||
2012 EBITDA | 2.7x - 3.9x | 3.7x | 3.5x - 4.5x | $ | 1,317,245 | $4,610,357 - $5,927,602 | ||||||||
2011 Revenue | 0.14x - 0.32x | 0.19x | 0.10x - 0.12x | $ | 53,566,220 | $5,356,622 - $6,427,946 | ||||||||
Concluded Enterprise Value Range | $5,000,000 - $6,000,000 |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 5 of 6 |
Selected Public Company Analysis
($ in millions, except per share data)
COMPANY | MARKET DATA | REVENUE GROWTH | EBITDA GROWTH | EBITDA MARGIN | ENTERPRISE VALUE AS MULTIPLE OF | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company | Stock Price | % of 52- Wk High | Enterprise Value | 3-YR CAGR | LTM | 2011 | 2012 | 3-YR CAGR | LTM | 2011 | 2012 | 3-YR AVG | LTM | 2011 | 2012 | LTM EBITDA | 2011 EBITDA | 2012 EBITDA | LTM Revenue | 2011 Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bird Construction Inc. (1) | $ | 9.89 | 77.9 | % | $ | 289 | 3.8 | % | 0.7 | % | 7.4 | % | NM | 4.6 | % | -54.4 | % | -36.0 | % | NM | 8.1 | % | 4.1 | % | 4.2 | % | 6.9 | % | NM | NM | 3.7x | 0.36x | 0.32x | |||||||||||||||||||||||||||||||||||||||||||||||
Balfour Beatty plc | 4.07 | 72.7 | 2,100 | 12.6 | -0.3 | 6.0 | 2.1 | 46.5 | -6.0 | -9.8 | 3.4 | 3.6 | 4.1 | 3.8 | 3.8 | 3.6 | 3.6 | 3.5 | 0.15 | 0.14 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Churchill Corp. | 13.52 | 65.3 | 425 | 21.0 | 62.7 | 10.2 | 11.3 | 43.2 | 45.1 | -15.0 | 40.6 | 7.5 | 6.8 | 5.5 | 6.9 | 4.5 | 5.5 | 3.9 | 0.31 | 0.30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Kier Group plc | 19.96 | 89.8 | 490 | -3.1 | 3.3 | 3.3 | 3.9 | -8.5 | 24.6 | 24.6 | 7.7 | 3.5 | 3.7 | 3.7 | 3.8 | 4.0 | 4.0 | 3.7 | 0.15 | 0.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tutor Perini Corporation | 12.31 | 46.2 | 711 | -11.6 | -29.2 | 17.2 | 22.6 | 9.9 | -19.2 | 7.7 | 20.0 | 5.0 | 5.9 | 5.8 | 5.7 | 4.2 | 3.3 | 2.7 | 0.25 | 0.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mean | 70.4 | % | 803 | 4.5 | % | 7.4 | % | 8.8 | % | 10.0 | % | 19.1 | % | -2.0 | % | -5.7 | % | 18.0 | % | 5.5 | % | 4.9 | % | 4.6 | % | 5.4 | % | 4.1x | 4.1x | 3.5x | 0.24x | 0.22x | ||||||||||||||||||||||||||||||||||||||||||||||||
Median | 72.7 | % | 490 | 3.8 | % | 0.7 | % | 7.4 | % | 7.6 | % | 9.9 | % | -6.0 | % | -9.8 | % | 13.9 | % | 5.0 | % | 4.1 | % | 4.2 | % | 5.7 | % | 4.1x | 3.8x | 3.7x | 0.25x | 0.19x | ||||||||||||||||||||||||||||||||||||||||||||||||
Malkin Construction | NA | NA | 40.3 | % | 3.0 | % | NA | NA | 58.7 | % | 3.0 | % | (0.9 | %) | 2.0 | % | 2.3 | % | 2.3 | % |
(1) | Acquired H.J. O’Connell Ltd. on 8/31/11, proforma LTM information not available for acquisition |
LTM = Latest Twelve Months
CAGR = Compounded Annual Growth Rate
Enterprise Value = (Market Capitalization) + (Debt + Preferred Stock + Minority Interest) - (Cash & Equivalents)
EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization
Source: Bloomberg, Capital IQ, SEC filings
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 6 of 6 |
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Business Enterprise Valuation |
October 14, 2011 | |||
Malkin Holdings LLC |
Confidential DRAFT – For Discussion Purposes Only
The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm to whom it is furnished by us.
Reproduction, publication, or dissemination of portions hereof may not be made without prior approval of Duff & Phelps, LLC.
Equity Value Summary | Malkin Holdings LLC (Formerly Wien & Malkin LLC) |
Low | Mid | High | ||||||||||
Enterprise Value Conclusion | $ | 4,250,000 | $ | 4,500,000 | $ | 5,000,000 | ||||||
Plus: Cash and Equivalents (1) | 0 | 0 | 0 | |||||||||
Plus: Unpaid Cash Overrides | 1,396,278 | 1,396,278 | 1,396,278 | |||||||||
Less: Debt (1) | 0 | 0 | 0 | |||||||||
Equity Value | $ | 5,646,278 | $ | 5,896,278 | $ | 6,396,278 |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 1 of 4 |
Discounted Cash Flow Analysis | Malkin Holdings LLC (Formerly Wien & Malkin LLC) |
LTM | 2011E | 2012P | 2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | 10-Yr CAGR | |||||||||||||||||||||||||||||||||||||
Revenue | $ | 7,819,662 | $ | 9,250,925 | $ | 8,462,634 | $ | 9,009,344 | $ | 9,131,748 | $ | 9,698,554 | $ | 9,581,727 | $ | 10,493,723 | $ | 10,612,224 | $ | 10,638,720 | $ | 11,056,716 | 8.1 | % | ||||||||||||||||||||||||
Growth | NA | 82.0 | % | (8.5 | %) | 6.5 | % | 1.4 | % | 6.2 | % | (1.2 | %) | 9.5 | % | 1.1 | % | 0.2 | % | 3.9 | % | |||||||||||||||||||||||||||
EBITDA | (965,707 | ) | 956,046 | 819,098 | 1,159,654 | 1,069,720 | 1,417,817 | 1,177,106 | 1,368,343 | 1,238,334 | 1,009,207 | 1,164,254 | NM | |||||||||||||||||||||||||||||||||||
EBITDA Margin | (12.3 | %) | 10.3 | % | 9.7 | % | 12.9 | % | 11.7 | % | 14.6 | % | 12.3 | % | 13.0 | % | 11.7 | % | 9.5 | % | 10.5 | % | ||||||||||||||||||||||||||
7/31-12/31 | ||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Interest and Taxes | $ | 92,432 | $ | 585,984 | $ | 919,152 | $ | 821,726 | $ | 1,162,190 | $ | 913,675 | $ | 1,096,914 | $ | 958,697 | $ | 721,134 | $ | 867,506 | ||||||||||||||||||||||||||||
Pro Forma Taxes @ 39.6% | (36,617 | ) | (232,137 | ) | (364,122 | ) | (325,527 | ) | (460,402 | ) | (361,953 | ) | (434,543 | ) | (379,788 | ) | (285,677 | ) | (343,662 | ) | ||||||||||||||||||||||||||||
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Net Operating Profit After Tax | 55,815 | 353,846 | 555,030 | 496,199 | 701,789 | 551,723 | 662,372 | 578,909 | 435,457 | 523,843 | ||||||||||||||||||||||||||||||||||||||
Depreciation | 112,888 | 233,114 | 240,502 | 247,993 | 255,627 | 263,431 | 271,428 | 279,638 | 288,073 | 296,748 | ||||||||||||||||||||||||||||||||||||||
Capital Expenditures | (173,246 | ) | (257,741 | ) | (265,473 | ) | (273,437 | ) | (281,640 | ) | (290,090 | ) | (298,792 | ) | (307,756 | ) | (316,989 | ) | (326,498 | ) | ||||||||||||||||||||||||||||
(Increase) Decrease in Working Capital | (31,813 | ) | 7,883 | (5,467 | ) | (1,224 | ) | (5,668 | ) | 1,168 | (9,120 | ) | (1,185 | ) | (265 | ) | (4,180 | ) | ||||||||||||||||||||||||||||||
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Free Cash Flow | ($ | 36,355 | ) | $ | 337,102 | $ | 524,592 | $ | 469,531 | $ | 670,107 | $ | 526,232 | $ | 625,888 | $ | 549,606 | $ | 406,276 | $ | 489,913 | |||||||||||||||||||||||||||
Terminal Growth Rate | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted Average Cost of Capital | 13.5 | % | 12.5 | % | 11.5 | % | ||||||||||||||||||||||||||||||||||||||||||
Terminal Value | $ | 4,805,812 | $ | 5,311,687 | $ | 5,936,591 | ||||||||||||||||||||||||||||||||||||||||||
Present Value of Terminal Value | 1,586,354 | 1,894,549 | 2,289,553 | |||||||||||||||||||||||||||||||||||||||||||||
Present Value of Discrete Cash Flow | 2,576,224 | 2,673,467 | 2,776,495 | |||||||||||||||||||||||||||||||||||||||||||||
Concluded Enterprise Value Range | $ | 4,250,000 | $ | 4,500,000 | $ | 5,000,000 | ||||||||||||||||||||||||||||||||||||||||||
Implied Enterprise Value Multiples | ||||||||||||||||||||||||||||||||||||||||||||||||
2011 EBITDA | $ | 956,046 | 4.4x | 4.7x | 5.2x | |||||||||||||||||||||||||||||||||||||||||||
2012 EBITDA | $ | 819,098 | 5.2x | 5.5x | 6.1x | |||||||||||||||||||||||||||||||||||||||||||
2011 Revenue | $ | 9,250,925 | 0.46x | 0.49x | 0.54x |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 2 of 4 |
Capital Expense Reclass
2008A | 2009A | 2010A | YTD 6/30/2010 | YTD 6/30/2011 | LTM 6/30/2011 | 2011E | 2012P | |||||||||||||||||||||||||
Total Revenue | $ | 7,674,236 | $ | 5,806,650 | $ | 5,084,138 | $ | 2,357,469 | $ | 5,092,993 | $ | 7,819,662 | $ | 9,250,925 | $ | 8,462,634 | ||||||||||||||||
Expensed Capital Expenditures | ||||||||||||||||||||||||||||||||
Repairs & Maintenance | $ | 118,912 | $ | 12,220 | $ | 71,661 | $ | 42,052 | $ | 41,275 | $ | 70,884 | $ | 85,842 | $ | 88,417 | ||||||||||||||||
Purchase Software and Supplies | 22,555 | 40,468 | 11,065 | 20,638 | 27,150 | 17,577 | 69,064 | 71,136 | ||||||||||||||||||||||||
Purchase Hardware | 0 | 25,062 | (0 | ) | 2,061 | 2,953 | 892 | 92,534 | 95,310 | |||||||||||||||||||||||
Maintenance / Services | 83,890 | 68,839 | 45,586 | 23,484 | 19,197 | 41,298 | 46,953 | 48,362 | ||||||||||||||||||||||||
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Total Capital Expenses | $ | 225,357 | $ | 146,589 | $ | 128,312 | $ | 88,234 | $ | 90,574 | $ | 130,652 | $ | 294,393 | $ | 303,225 | ||||||||||||||||
Expense Reclass @ 85.0% | (191,554 | ) | (124,601 | ) | (109,065 | ) | (74,999 | ) | (76,988 | ) | (111,054 | ) | (250,234 | ) | (257,741 | ) | ||||||||||||||||
Capital Expenditures | 191,554 | 124,601 | 109,065 | 74,999 | 76,988 | 111,054 | 250,234 | 257,741 | ||||||||||||||||||||||||
Growth | (35.0 | %) | (12.5 | %) | 2.7 | % | 129.4 | % | 3.0 | % | ||||||||||||||||||||||
as % of Total Revenue | 2.5 | % | 2.1 | % | 2.1 | % | 3.2 | % | 1.5 | % | 1.4 | % | 2.7 | % | 3.0 | % |
2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | |||||||||||||||||||||||||
Total Revenue | $ | 9,009,344 | $ | 9,131,748 | $ | 9,698,554 | $ | 9,581,727 | $ | 10,493,723 | $ | 10,612,224 | $ | 10,638,720 | $ | 11,056,716 | ||||||||||||||||
Expensed Capital Expenditures | ||||||||||||||||||||||||||||||||
Repairs & Maintenance | $ | 91,069 | $ | 93,801 | $ | 96,616 | $ | 99,514 | $ | 102,499 | $ | 105,574 | $ | 108,742 | $ | 112,004 | ||||||||||||||||
Purchase Software and Supplies | 73,270 | 75,468 | 77,732 | 80,064 | 82,466 | 84,940 | 87,488 | 90,113 | ||||||||||||||||||||||||
Purchase Hardware | 98,169 | 101,114 | 104,148 | 107,272 | 110,490 | 113,805 | 117,219 | 120,736 | ||||||||||||||||||||||||
Maintenance / Services | 49,813 | 51,307 | 52,846 | 54,432 | 56,065 | 57,746 | 59,479 | 61,263 | ||||||||||||||||||||||||
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Total Capital Expenses | $ | 312,321 | $ | 321,691 | $ | 331,342 | $ | 341,282 | $ | 351,520 | $ | 362,066 | $ | 372,928 | $ | 384,116 | ||||||||||||||||
Expense Reclass @ 85.0% | (265,473 | ) | (273,437 | ) | (281,640 | ) | (290,090 | ) | (298,792 | ) | (307,756 | ) | (316,989 | ) | (326,498 | ) | ||||||||||||||||
Capital Expenditures | 265,473 | 273,437 | 281,640 | 290,090 | 298,792 | 307,756 | 316,989 | 326,498 | ||||||||||||||||||||||||
Growth | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||||||||
as % of Total Revenue | 2.9 | % | 3.0 | % | 2.9 | % | 3.0 | % | 2.8 | % | 2.9 | % | 3.0 | % | 3.0 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 3 of 4 |
Weighted Average Cost of Capital Analysis - Malkin Holdings LLC (Formerly Wien & Malkin LLC)
Levered Beta | Discount Rate Range | Sources and Considerations | ||||||||
Unlevered Beta | 0.65 | 0.75 | Selected Public Companies and Cost of Capital Yearbook | |||||||
Debt % of Capital | 20.0 | % | 10.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Equity % of Capital | 80.0 | % | 90.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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Levered Beta | 0.75 | 0.80 | ||||||||
Levered Cost of Equity | ||||||||||
Risk-free Rate | 4.0 | % | 4.0 | % | Expected Long-Term Risk Free Rate | |||||
Levered Beta | 0.75 | 0.80 | See Above | |||||||
Market Risk Premium | 5.5 | % | 5.5 | % | Duff & Phelps Study | |||||
Small Stock Premium | 6.0 | % | 6.0 | % | Duff & Phelps Cost of Capital Study; SBBI Valuation Edition 2011 Yearbook | |||||
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Levered Cost of Equity | 14.1 | % | 14.4 | % | ||||||
Cost of Debt | ||||||||||
Cost of Long-term Debt | 5.0 | % | 5.0 | % | BBB Bond Rate | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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After-tax Cost of Debt | 3.0 | % | 3.0 | % | ||||||
Weighted Average Cost of Capital (WACC) | ||||||||||
Debt % of Capital | 20.0 | % | 10.0 | % | ||||||
Equity % of Capital | 80.0 | % | 90.0 | % | ||||||
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Calculated WACC | 11.9 | % | 13.3 | % | ||||||
Selected WACC Range | 12.50 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 4 of 4 |
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Business Enterprise Valuation | October 14, 2011 | |||
Malkin Properties, L.L.C. | ||||
Malkin Properties of New York, L.L.C. | ||||
Malkin Properties of Connecticut, L.L.C. |
Confidential DRAFT — For Discussion Purposes Only
The information contained herein is of a confidential nature and is intended for the exclusive use of the persons or firm to whom it is furnished by us.
Reproduction, publication, or dissemination of portions hereof may not be made without prior approval of Duff & Phelps, LLC.
Equity Value Conclusion | Malkin Properties - MP, MCT, MNY |
Low | Mid | High | ||||||||||
Enterprise Value Conclusion | $ | 4,150,000 | $ | 4,400,000 | $ | 4,650,000 | ||||||
Plus: Cash and Equivalents (1) | 0 | 0 | 0 | |||||||||
Less: Debt (1) | 0 | 0 | 0 | |||||||||
Equity Value | $ | 4,150,000 | $ | 4,400,000 | $ | 4,650,000 |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 1 of 6 |
Discounted Cash Flow Analysis | Malkin Properties - MP, MCT, MNY |
2011E | 2012P | 2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | 10-Yr CAGR | ||||||||||||||||||||||||||||||||||||||
Revenue | $ | 6,046,805 | $ | 5,932,825 | $ | 6,356,710 | $ | 6,265,711 | $ | 5,657,604 | $ | 6,507,218 | $ | 10,353,011 | $ | 5,810,629 | $ | 6,043,934 | $ | 7,023,038 | 2.9 | % | ||||||||||||||||||||||||||
Growth | NA | (1.9 | %) | 7.1 | % | (1.4 | %) | (9.7 | %) | 15.0 | % | 59.1 | % | (43.9 | %) | 4.0 | % | 16.2 | % | |||||||||||||||||||||||||||||
EBITDA | 1,378,192 | 894,148 | 1,175,725 | 938,148 | 179,065 | 944,046 | 4,407,881 | (302,750 | ) | (243,522 | ) | 556,448 | 10-Yr Avg | |||||||||||||||||||||||||||||||||||
EBITDA Margin | 22.8 | % | 15.1 | % | 18.5 | % | 15.0 | % | 3.2 | % | 14.5 | % | 42.6 | % | (5.2 | %) | (4.0 | %) | 7.9 | % | 13.0 | % | ||||||||||||||||||||||||||
EBITDA Growth | NA | (35.1 | %) | 31.5 | % | (20.2 | %) | (80.9 | %) | 427.2 | % | 366.9 | % | (106.9 | %) | (19.6 | %) | (328.5 | %) | |||||||||||||||||||||||||||||
7/31-12/31 | Terminal | |||||||||||||||||||||||||||||||||||||||||||||||
Earnings Before Interest and Taxes | $ | 1,813,644 | $ | 859,629 | $ | 1,125,908 | $ | 876,140 | $ | 107,174 | $ | 863,982 | $ | 4,320,902 | ($ | 395,722 | ) | ($ | 341,822 | ) | $ | 453,296 | $ | 981,581 | ||||||||||||||||||||||||
Pro Forma Taxes @ 39.6% | (718,475 | ) | (340,542 | ) | (446,028 | ) | (347,083 | ) | (42,457 | ) | (342,267 | ) | (1,711,725 | ) | 156,765 | 135,413 | (179,573 | ) | (388,853 | ) | ||||||||||||||||||||||||||||
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Net Operating Profit After Tax | 1,095,169 | 519,087 | 679,880 | 529,057 | 64,717 | 521,716 | 2,609,177 | (238,957 | ) | (206,409 | ) | 273,723 | 592,728 | |||||||||||||||||||||||||||||||||||
Depreciation | 7,526 | 34,519 | 49,817 | 62,008 | 71,891 | 80,064 | 86,979 | 92,972 | 98,300 | 103,153 | (109,762 | ) | ||||||||||||||||||||||||||||||||||||
Capital Expenditures | (85,721 | ) | (95,710 | ) | (98,581 | ) | (101,538 | ) | (104,585 | ) | (107,722 | ) | (110,954 | ) | (114,282 | ) | (117,711 | ) | (121,242 | ) | (115,539 | ) | ||||||||||||||||||||||||||
(Increase) Decrease in Working Capital | (15,908 | ) | 22,221 | (87,385 | ) | (97,764 | ) | (86,737 | ) | (55,240 | ) | (86,961 | ) | (84,457 | ) | (37,610 | ) | (111,328 | ) | (85,290 | ) | |||||||||||||||||||||||||||
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Free Cash Flow | $ | 1,001,066 | $ | 480,118 | $ | 543,731 | $ | 391,762 | ($ | 54,714 | ) | $ | 438,818 | $ | 2,498,240 | ($ | 344,724 | ) | ($ | 263,430 | ) | $ | 144,305 | $ | 282,135 | |||||||||||||||||||||||
Terminal Growth Rate | 3.00 | % | 3.00 | % | 3.00 | % | ||||||||||||||||||||||||||||||||||||||||||
Weighted Average Cost of Capital | 13.50 | % | 12.50 | % | 11.50 | % | ||||||||||||||||||||||||||||||||||||||||||
Terminal Value | $ | 2,687,003 | $ | 2,969,846 | $ | 3,319,239 | ||||||||||||||||||||||||||||||||||||||||||
Present Value of Terminal Value | 780,634 | 940,651 | 1,147,053 | |||||||||||||||||||||||||||||||||||||||||||||
Present Value of Discrete Cash Flow | 3,360,401 | 3,437,068 | 3,517,715 | |||||||||||||||||||||||||||||||||||||||||||||
Concluded Enterprise Value Range (Rounded) | $ | 4,150,000 | $ | 4,400,000 | $ | 4,650,000 | ||||||||||||||||||||||||||||||||||||||||||
Implied Enterprise Value Multiples | ||||||||||||||||||||||||||||||||||||||||||||||||
2011 EBITDA | $ | 1,378,192 | 3.0x | 3.2x | 3.4x | |||||||||||||||||||||||||||||||||||||||||||
2012 EBITDA | $ | 894,148 | 4.6x | 4.9x | 5.2x | |||||||||||||||||||||||||||||||||||||||||||
2011 Revenue | $ | 6,046,805 | 0.69x | 0.73x | 0.77x |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 2 of 6 |
Free Breakdown
2008E | 2009E | 2010E | YTD 6/30/2010 | YTD 6/30/2011 | LTM 6/30/2011 | 2011E | 2012P | |||||||||||||||||||||||||
Management Fees | $ | 2,974,288 | $ | 3,172,130 | $ | 3,015,111 | $ | 1,516,469 | $ | 1,570,801 | $ | 3,069,443 | $ | 3,091,619 | $ | 3,060,642 | ||||||||||||||||
Leasing Fees | 996,245 | 681,135 | 1,232,404 | 371,901 | 108,076 | 968,579 | 1,201,583 | 1,239,343 | ||||||||||||||||||||||||
Financing Fees | 0 | 76,700 | 650,000 | 650,000 | 0 | 0 | 0 | 75,288 | ||||||||||||||||||||||||
Other Fees | 735,696 | 339,519 | 358,714 | 106,297 | 215,123 | 467,540 | 955,281 | 735,281 | ||||||||||||||||||||||||
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Total Fees | $ | 4,706,229 | $ | 4,269,484 | $ | 5,256,229 | $ | 2,644,667 | $ | 1,894,000 | $ | 4,505,562 | $ | 5,248,483 | $ | 5,110,553 | ||||||||||||||||
Management Fee Growth | 6.7 | % | (4.9 | %) | 3.6 | % | 2.5 | % | (1.0 | %) | ||||||||||||||||||||||
Leasing Fee Growth | (31.6 | %) | 80.9 | % | (70.9 | %) | (2.5 | %) | 3.1 | % | ||||||||||||||||||||||
Financing Fee Growth | NA | 747.5 | % | (100.0 | %) | (100.0 | %) | NA | ||||||||||||||||||||||||
Other Fee Growth | (53.9 | %) | 5.7 | % | 102.4 | % | 166.3 | % | (23.0 | %) | ||||||||||||||||||||||
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Total Fee Growth | (9.3 | %) | 23.1 | % | (28.4 | %) | NA | (2.6 | %) | |||||||||||||||||||||||
Leasing Fees as % of Management Fees | 33.5 | % | 21.5 | % | 40.9 | % | 24.5 | % | 6.9 | % | 31.6 | % | 38.9 | % | 40.5 | % | ||||||||||||||||
Financing Fees as % of Management Fees | 0.0 | % | 2.4 | % | 21.6 | % | 42.9 | % | 0.0 | % | 0.0 | % | 0.0 | % | 2.5 | % | ||||||||||||||||
Other Fees as % of Management Fees | 24.7 | % | 10.7 | % | 11.9 | % | 7.0 | % | 13.7 | % | 15.2 | % | 30.9 | % | 24.0 | % | ||||||||||||||||
Fee Proportion | ||||||||||||||||||||||||||||||||
Management Fees | 63.2 | % | 74.3 | % | 57.4 | % | 57.3 | % | 82.9 | % | 68.1 | % | 58.9 | % | 59.9 | % | ||||||||||||||||
Leasing Fees | 21.2 | % | 16.0 | % | 23.4 | % | 14.1 | % | 5.7 | % | 21.5 | % | 22.9 | % | 24.3 | % | ||||||||||||||||
Financing Fees | 0.0 | % | 1.8 | % | 12.4 | % | 24.6 | % | 0.0 | % | 0.0 | % | 0.0 | % | 1.5 | % | ||||||||||||||||
Other Fees | 15.6 | % | 8.0 | % | 6.8 | % | 4.0 | % | 11.4 | % | 10.4 | % | 18.2 | % | 14.4 | % | ||||||||||||||||
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Total Fees | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | |||||||||||||||||||||||||
Management Fees | $ | 3,182,459 | $ | 3,318,746 | $ | 3,439,660 | $ | 3,516,666 | $ | 3,637,892 | $ | 3,755,628 | $ | 3,808,057 | $ | 3,963,251 | ||||||||||||||||
Leasing Fees | 1,429,324 | 860,586 | 254,496 | 327,996 | 569,074 | 367,885 | 334,231 | 727,241 | ||||||||||||||||||||||||
Financing Fees | 102,707 | 136,250 | 359,649 | 1,031,801 | 4,190,500 | 0 | 85,075 | 161,879 | ||||||||||||||||||||||||
Other Fees | 795,281 | 1,077,781 | 705,281 | 705,281 | 1,002,306 | 705,281 | 805,281 | 1,129,038 | ||||||||||||||||||||||||
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Total Fees | $ | 5,509,771 | $ | 5,393,363 | $ | 4,759,085 | $ | 5,581,744 | $ | 9,399,772 | $ | 4,828,794 | $ | 5,032,643 | $ | 5,981,409 | ||||||||||||||||
Management Fee Growth | 4.0 | % | 4.3 | % | 3.6 | % | 2.2 | % | 3.4 | % | 3.2 | % | 1.4 | % | 4.1 | % | ||||||||||||||||
Leasing Fee Growth | 15.3 | % | (39.8 | %) | (70.4 | %) | 28.9 | % | 73.5 | % | (35.4 | %) | (9.1 | %) | 117.6 | % | ||||||||||||||||
Financing Fee Growth | 36.4 | % | 32.7 | % | 164.0 | % | 186.9 | % | 306.1 | % | (100.0 | %) | NA | 90.3 | % | |||||||||||||||||
Other Fee Growth | 8.2 | % | 35.5 | % | (34.6 | %) | 0.0 | % | 42.1 | % | (29.6 | %) | 14.2 | % | 40.2 | % | ||||||||||||||||
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Total Fee Growth | 7.8 | % | (2.1 | %) | (11.8 | %) | 17.3 | % | 68.4 | % | (48.6 | %) | 4.2 | % | 18.9 | % | ||||||||||||||||
Leasing Fees as % of Management Fees | 44.9 | % | 25.9 | % | 7.4 | % | 9.3 | % | 15.6 | % | 9.8 | % | 8.8 | % | 18.3 | % | ||||||||||||||||
Financing Fees as % of Management Fees | 3.2 | % | 4.1 | % | 10.5 | % | 29.3 | % | 115.2 | % | 0.0 | % | 2.2 | % | 4.1 | % | ||||||||||||||||
Other Fees as % of Management Fees | 25.0 | % | 32.5 | % | 20.5 | % | 20.1 | % | 27.6 | % | 18.8 | % | 21.1 | % | 28.5 | % | ||||||||||||||||
Fee Proportion | ||||||||||||||||||||||||||||||||
Management Fees | 57.8 | % | 61.5 | % | 72.3 | % | 63.0 | % | 38.7 | % | 77.8 | % | 75.7 | % | 66.3 | % | ||||||||||||||||
Leasing Fees | 25.9 | % | 16.0 | % | 5.3 | % | 5.9 | % | 6.1 | % | 7.6 | % | 6.6 | % | 12.2 | % | ||||||||||||||||
Financing Fees | 1.9 | % | 2.5 | % | 7.6 | % | 18.5 | % | 44.6 | % | 0.0 | % | 1.7 | % | 2.7 | % | ||||||||||||||||
Other Fees | 14.4 | % | 20.0 | % | 14.8 | % | 12.6 | % | 10.7 | % | 14.6 | % | 16.0 | % | 18.9 | % | ||||||||||||||||
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Total Fees | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 3 of 6 |
Normalized Terminal Free Cash Flow
Management Fees | $ | 4,082,149 | ||
Leasing Fees (1) | 896,004 | |||
Financing Fees (2) | 698,447 | |||
Other Fees (3) | 1,016,101 | |||
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Total Revenue | 6,692,700 | |||
Expenses (4) | (5,820,882 | ) | ||
EBITDA | 871,818 | |||
Depreciation | 109,762 | |||
EBIT | 981,581 | |||
Taxes | (388,853 | ) | ||
NOPAT | 592,728 | |||
Depreciation | (109,762 | ) | ||
Capital Expenditures | (115,539 | ) | ||
Change in New Working Capital | (85,290 | ) | ||
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Free Cash Flow | $ | 282,135 |
(1) | Normalized based on the 10-yr average leasing fees as a % of management fees (21.9%). |
(2) | Normalized based on the 10-yr average financing fees as a % of management fees (17.1% |
(3) | Normalized based on the 10-yr average other fees as a % of management fees (24.9%). |
(4) | Normalized based on the 10-yr average expenses as % of total revenue (85.9%). |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 4 of 6 |
Capital Expense Reclass
2008A | 2009A | 2010A | YTD 6/30/2010 | YTD 6/30/2011 | LTM 6/30/2011 | 2011E | 2012P | |||||||||||||||||||||||||
Computer Equipment PC/Laptop | $ | 2,440 | $ | 1,396 | $ | 3,552 | $ | 2,516 | $ | 184 | $ | 1,220 | $ | 46,183 | $ | 47,568 | ||||||||||||||||
Computer Network/Server | 157 | 472 | 550 | 3,318 | 3,662 | 894 | 14,866 | 15,312 | ||||||||||||||||||||||||
Furniture & Fixtures | 795 | 0 | 2,194 | 653 | 4,626 | 6,167 | 48,271 | 49,719 | ||||||||||||||||||||||||
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Total Capital Expenses | $ | 3,392 | $ | 1,868 | $ | 6,296 | $ | 6,487 | $ | 8,472 | $ | 8,281 | $ | 109,320 | $ | 112,600 | ||||||||||||||||
Expense Reclass @ 85.0% | (2,883 | ) | (1,588 | ) | (5,352 | ) | (5,514 | ) | (7,201 | ) | (7,039 | ) | (92,922 | ) | (95,710 | ) | ||||||||||||||||
Capital Expenditures | 2,883 | 1,588 | 5,352 | 5,514 | 7,201 | 7,039 | 92,922 | 95,710 | ||||||||||||||||||||||||
Growth | (44.9 | %) | 237.0 | % | 30.6 | % | 1,636.3 | % | 3.0 | % | ||||||||||||||||||||||
as % of Total Fees | 0.1 | % | 0.0 | % | 0.1 | % | 0.2 | % | 0.4 | % | 0.2 | % | 1.8 | % | 1.9 | % |
2013P | 2014P | 2015P | 2016P | 2017P | 2018P | 2019P | 2020P | |||||||||||||||||||||||||
Computer Equipment PC/Laptop | $ | 48,996 | $ | 50,465 | $ | 51,979 | $ | 53,539 | $ | 55,145 | $ | 56,799 | $ | 58,503 | $ | 60,258 | ||||||||||||||||
Computer Network/Server | 15,771 | 16,244 | 16,732 | 17,234 | 17,751 | 18,283 | 18,832 | 19,397 | ||||||||||||||||||||||||
Furniture & Fixtures | 51,211 | 52,747 | 54,329 | 55,959 | 57,638 | 59,367 | 61,148 | 62,983 | ||||||||||||||||||||||||
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Total Capital Expenses | $ | 115,978 | $ | 119,457 | $ | 123,041 | $ | 126,732 | $ | 130,534 | $ | 134,450 | $ | 138,483 | $ | 142,638 | ||||||||||||||||
Expense Reclass @ 85.0% | (98,581 | ) | (101,538 | ) | (104,585 | ) | (107,722 | ) | (110,954 | ) | (114,282 | ) | (117,711 | ) | (121,242 | ) | ||||||||||||||||
Capital Expenditures | 98,581 | 101,538 | 104,585 | 107,722 | 110,954 | 114,282 | 117,711 | 121,242 | ||||||||||||||||||||||||
Growth | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | 3.0 | % | ||||||||||||||||
as % of Total Fees | 1.8 | % | 1.9 | % | 2.2 | % | 1.9 | % | 1.2 | % | 2.4 | % | 2.3 | % | 2.0 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 5 of 6 |
Weighted Average Cost of Capital Analysis - Malkin Properties - MP, MCT, MNY
Levered Beta | Discount Rate Range | Sources and Considerations | ||||||||
Unlevered Beta | 0.65 | 0.75 | Selected Public Companies and Cost of Capital Yearbook | |||||||
Debt % of Capital | 20.0 | % | 10.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Equity % of Capital | 80.0 | % | 90.0 | % | Selected Public Companies; Cost of Capital Yearbook; Historical Levels | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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Levered Beta | 0.75 | 0.80 | ||||||||
Levered Cost of Equity | ||||||||||
Risk-free Rate | 4.0 | % | 4.0 | % | Expected Long-Term Risk Free Rate | |||||
Levered Beta | 0.75 | 0.80 | See Above | |||||||
Market Risk Premium | 5.5 | % | 5.5 | % | Duff & Phelps Study | |||||
Small Stock Premium | 6.0 | % | 6.0 | % | Duff & Phelps Cost of Capital Study; SBBI Valuation Edition 2011 Yearbook | |||||
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Levered Cost of Equity | 14.1 | % | 14.4 | % | ||||||
Cost of Debt | ||||||||||
Cost of Long-term Debt | 5.0 | % | 5.0 | % | BBB Bond Rate | |||||
Tax Rate | 39.6 | % | 39.6 | % | Blended Federal & State Corporate Income Tax Rate | |||||
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After-tax Cost of Debt | 3.0 | % | 3.0 | % | ||||||
Weighted Average Cost of Capital (WACC) | ||||||||||
Debt % of Capital | 20.0 | % | 10.0 | % | ||||||
Equity % of Capital | 80.0 | % | 90.0 | % | ||||||
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Calculated WACC | 11.9 | % | 13.3 | % | ||||||
Selected WACC Range | 12.50 | % |
CONFIDENTIAL DRAFT - For Discussion Purposes Only | Page 6 of 6 |