PORTFOLIO MANAGER S REVIEW

Transcription

1 PORTFOLIO MANAGER S REVIEW Edited by the Research Team of A Monthly Publication of BeyondProxy LLC June 19, 2009 When asked how he became so successful, Buffett answered: we read hundreds and hundreds of annual reports every year. With John Mihaljevic, CFA Managing Editor, The Manual of Ideas john@manualofideas.com If our efforts can further the goals of our members by giving them a discernible edge over other market participants, we have succeeded. Top 5 Ideas In This Report Apartment Investment & Management (NYSE: AIV) p. 26 MI Developments (NYSE: MIM; Toronto: MIM.A) p. 29 Playboy Enterprises (NYSE: PLA, PLA.A). p. 32 Steinway Musical Instruments (NYSE: LVB).. p. 34 Syms Corp. (Nasdaq: SYMS) p. 37 Also Inside Editor s Commentary.. p. 4 Notable Statements on Inflation p. 6 Stocks with Real Estate Value p. 8 Investment Candidates 6-10 p. 39 Other Investment Candidates.. p. 52 About Portfolio Manager s Review Our goal is to bring you equity investment ideas that are compelling on the basis of value versus price. John Mihaljevic, editor, is a fund manager, former banker and analyst. He is a member of Value Investors Club, an exclusive community of top money managers, and has won the Club s prize for best investment idea. John is a trained capital allocator, having studied under Yale chief investment officer David Swensen and served as research assistant to Nobel laureate James Tobin. John holds a BA in Economics, summa cum laude, from Yale and is a CFA charterholder. He resides in New York City with his wife and two kids. INFLATION PROTECTION SERIES PART I: CHEAP COMPANIES WITH HIDDEN REAL ESTATE VALUE Snapshot of 100 companies with real estate value 23 companies profiled and analyzed Proprietary selection of Top 5 candidates for investment Companies mentioned in this issue include: Alexander & Baldwin, Alexander's, Alexandria R. E., AMB Property, American Campus, Apartment Investment & Management (Aimco), Assisted Living Concepts, AvalonBay, BioMed Realty, Boston Properties, Brandywine Realty, BRE Properties, Bridgford Foods, Brookdale Senior, Brookfield Prop., California Coastal, Camden Property, CB Richard Ellis, CBL & Associates, Cedar Shopping, Centex, Cogdell Spencer, Colonial Properties, Consolidated- Tomoka Land, Corporate Office, Cousins Properties, Cresud, D.R. Horton, DCT Industrial, Developers Divers., Digital Realty, Douglas Emmett, Duke Realty, DuPont Fabros, Dynacq Healthcare, EastGroup Properties, Equity Lifestyle, Equity One, Equity Residential, Essex Property, Extra Space Storage, Federal Realty, Forest City, General Growth Properties, Great Wolf Resorts, Grubb & Ellis, HCP, Health Care REIT, Healthcare Realty, Home Properties, IRSA Inversiones, KB Home, Kilroy Realty, Kimco Realty, Kite Realty, Lennar, Liberty Property, M.D.C. Holdings, Macerich Company, Mack-Cali Realty, Maguire Properties, Maui Land & Pineapple, Meritage Homes, MI Developments, National Retail, Nationwide Health, Natuzzi, NVR, Panasonic, Pennsylvania REIT, Playboy Enterprises, Post Properties, PriceSmart, ProLogis, Public Storage, Realty Income, Regency Centers, Ryland Group, Sears Holdings, Silverleaf Resorts, Simon Property, Skilled Healthcare, SL Green Realty, Sonae Capital, St. Joe Company, Steak n Shake, Steinway Musical Instruments, Syms Corp., Tanger Outlet, Target, Taubman Centers, Tejon Ranch, Thomas Properties, Toll Brothers, UDR, U-Store-It, Vail Resorts, Ventas, Vornado Realty, Weingarten Realty, Winthrop Realty Trust, and more. (profiled companies are underlined) Copyright Warning: It is a violation of federal copyright law to reproduce all or part of this publication for any purpose without the prior written consent of BeyondProxy LLC. The Copyright Act imposes liability of up to $150,000 per issue for such infringement, and violators will be prosecuted to the full extent of the law. See inside for subscription information, including having multiple copies sent to you by BeyondProxy LLC. All rights reserved.

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3 Table of Contents EDITOR S COMMENTARY... 4 NOTABLE RECENT STATEMENTS ON INFLATION... 6 SNAPSHOT OF 100 COMPANIES WITH REAL ESTATE VALUE... 8 BY TYPE OF REAL ESTATE OWNED... 8 BY MARKET VALUE STOCK PRICE PERFORMANCE FREE CASH FLOW P/E MULTIPLES HISTORICAL AND PROSPECTIVE EPS LATEST QUARTERLY EPS SURPRISE REVENUE AND EPS GROWTH PERCENTILE RANK WITHIN INDUSTRY INSIDER BUYING AND OWNERSHIP PROFILED COMPANIES WHERE S THE REAL ESTATE VALUE TOP 5 INVESTMENT OPPORTUNITIES APARTMENT INVESTMENT & MANAGEMENT (AIMCO) (AIV) MI DEVELOPMENTS (MIM) PLAYBOY ENTERPRISES (PLA) STEINWAY MUSICAL INSTRUMENTS (LVB) SYMS (SYMS) NEXT 5 INVESTMENT OPPORTUNITIES CONSOLIDATED-TOMOKA LAND (CTO) CRESUD (CRESY) GENERAL GROWTH PROPERTIES (GGWPQ) MAUI LAND & PINEAPPLE (MLP) STEAK N SHAKE (SNS) OTHER COMPANIES WITH REAL ESTATE ASSETS ALEXANDER & BALDWIN (ALEX) ASSISTED LIVING CONCEPTS (ALC) DYNACQ HEALTHCARE (DYII) NATUZZI (NTZ) PANASONIC (PC) PRICESMART (PSMT) SEARS HOLDINGS (SHLD) SONAE CAPITAL (LISBON: SONC) ST. JOE (JOE) TARGET (TGT) TEJON RANCH (TRC) VAIL RESORTS (MTN) WINTHROP REALTY TRUST (FUR) by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 3 of 87

4 U.S. Equities Cheapness Snapshot 1 % of U.S. stocks trading for less than All stocks MV> $1bn net net current assets 4% 0% net cash 5% 1% tangible book value 24% 9% 5x trailing EPS 3% 2% 1 As of June 12, Includes all stocks traded on U.S. stock exchanges (NYSE, Amex, Nasdaq, OTC) that have a market value of more than $1 million and have reported results for a period ending no earlier than nine months ago. Editor s Commentary One no longer needs to turn to well-known Fed critics such as Jim Rogers or Marc Faber to hear warnings about the risk of accelerating inflation. Concerns have been expressed recently by some of the investors we respect most, including Bill Ackman, Warren Buffett, David Einhorn, Tom Gayner, Julian Robertson, Paul Singer, and David Swensen. The rationale is as obvious as it is simple: Inflation is first and foremost a monetary phenomenon, and recent Fed policies have been unprecedented in size and scope. As a result, the purchasing power of the U.S. dollar may erode at an accelerating pace over the next decade. As investors, the time to prepare is now. We should be clear on one point: Portfolio Manager s Review is not making a macro call on inflation, nor will we present the case for accelerating inflation in this report. Quite simply, we believe the risk of inflation is serious enough to warrant preparation. Over the next several months, as part of our Inflation Protection Series, we will analyze businesses that may represent attractive investment opportunities in their own right and may provide better-than-average inflation protection. In this issue, we present companies that own significant real estate assets. We pay particular attention to companies with hidden or unusual assets. In some cases, these companies operate valuable non-real estate businesses, providing an opportunity to acquire their real estate holdings at a low implied valuation. Conversely, the real estate owned by some of the profiled companies accounts for a large portion of their enterprise value, enabling us to acquire their operating businesses on the cheap. We highlight the following five ideas in this Portfolio Manager s Review: Apartment Investment and Management (AIV) is an apartment REIT that owns or manages 160,000 apartments. While Aimco s real estate value is fairly straightforward, the company has two hidden assets on the liability side of the balance sheet. First, 84% of Aimco s debt is non-recourse, giving shareholders a put option on properties whose debt exceeds property value, while preserving upside on a property-by-property basis. Second, most of Aimco s debt is fixed rate, with a weighted-average maturity of nearly ten years. This makes inflation a friend of shareholders, one of which is Bill Ackman s Pershing Square. MI Developments (MIM) is a virtually unlevered owner and operator of industrial real estate worldwide, with property book value of $1.3 billion versus equity market value of less than $400 million. The strong profitability of MIM s real estate business has been obscured by horseracing losses. However, the recent bankruptcy filing of horseracing subsidiary Magna Entertainment and activism by David Einhorn s Greenlight Capital may finally move MIM away from horseracing. Shareholders receive a 7% dividend yield while waiting for full value to be realized. Playboy Enterprises (PLA) owns the widely recognized Playboy brand and a valuable license revenue stream, but it also has two underappreciated assets : cheap fixed-rate debt financing, with a 3% interest rate and 2025 maturity; and the Playboy Mansion, a unique piece of real estate in Bel Air, California, which cost the company $1 million in 1971 but could conceivably be auctioned off for $50 million or more. Playboy s poor performance has finally forced the company to make some tough choice, including lay off employees, close the New York office, and replace Hefner s daughter Christie with a new CEO by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 4 of 87

5 Steinway Musical Instruments (LVB), the world s leading maker of musical instruments, owns significant hidden real estate assets, including a 17- story office building in Midtown Manhattan, carried at $23 million but worth up to $100 million, and a plant on 12 acres of waterfront property in Queens, carried at $3 million but worth up to $200 million. The company also owns other properties, with total real estate value quite possibly exceeding recent enterprise value. Investors may have an opportunity to buy the piano and band instrument businesses for free. Syms Corp. (SYMS) is a discount retailer with locations in suburban locations and New York City. The company owns the real estate associated with 21 of its 32 retail stores, with owned space of 1.9 million square feet, implying a recent enterprise value of $47 per square foot of owned floor space. The company was declared the winning bidder for certain assets of bankrupt Filene s Basement earlier this month, boosting Syms s discount retail footprint and creating additional value for shareholders. Prior to the Filene s deal, Syms had no debt, making it a lowdownside investment with significant upside potential. In the next few installments of our Inflation Protection Series, starting in July, we will look at good businesses companies that achieve high returns on capital employed and enjoy above-average pricing power. Above all, we will scour the investment landscape for high-quality businesses able to raise prices in step with or even ahead of increases in the consumer price index. Sincerely, John Mihaljevic, CFA and The Manual of Ideas research team 2009 by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 5 of 87

6 Notable Recent Statements on Inflation In poker terms, the Treasury and the Fed have gone all in. Economic medicine that was previously meted out by the cupful has recently been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcome aftereffects. Their precise nature is anyone s guess, though one likely consequence is an onslaught of inflation. Warren Buffett, letter to Berkshire Hathaway shareholders, February 27, 2009 Our current chairman of the Federal Reserve, Ben Bernanke, is an inflationist. When times were good, he supported an easy money policy. Even when the Fed raised rates, Bernanke took great pains to give the markets many warnings to insure that the higher rates wouldn t break up the credit party, i.e., bubble formation. Now that the cycle has turned, the Fed has promised to resort to all means necessary to head off the effects of the collapsed bubble. Rates have effectively been lowered to zero. The Fed is making loans collateralized by toxic waste and has now begun a policy called quantitative easing a fancy term for printing money. The size of the Fed s balance sheet is exploding and the currency is being debased. Combined with an aggressive fiscal policy, it is clear that the authorities are going all in to try to mitigate the near-term effects of the economic collapse. Our guess is that if the chairman of the Fed is determined to debase the currency, he will succeed. Our instinct is that gold will do well either way: deflation will lead to further steps to debase the currency, while inflation speaks for itself. David Einhorn, letter to Greenlight Capital investors, January 20, 2009 I am 100 percent sure that the U.S. will go into hyperinflation The problem with government debt growing so much is that when the time will come and the Fed should increase interest rates, they will be very reluctant to do so and so inflation will start to accelerate. Marc Faber, interview with Bloomberg Television, May 27, 2009 My main worry right now is the possibility of inflation due to the actions of the government. Inflation is part of how the world is trying to get out from under the excess level of leverage that exists. Not to contradict another gentleman who is smarter than I am, Milton Friedman, but inflation is not just a monetary phenomenon in my opinion. There are psychological aspects to it as well. If inflationary psychology takes hold I don t see how you could keep long term interest rates anywhere near where they are today. If long rates go up then the price of every asset goes down. While I think intellectual capital with repricing ability is the best way to mitigate that risk it will not be fun to go through that process if inflation heats up too much. There is a tipping point as Malcolm Gladwell would say where a little inflation is helpful, but too much is absolutely destructive. And I mean destructive way beyond just the stock market but in terms of social fabric issues. I am constantly thinking about this dimension and trying to be a good steward of the finances at Markel in the context of this risk. Tom Gayner, interview with The Manual of Ideas, April 6, by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 6 of 87

7 ...most of Liberty s liabilities are very long term and fixed, and those represent a pretty darned good bet on inflation. Our cash is basically all very liquid, very short term, very safe. We re sitting with cash looking for opportunity and with liabilities looking to be devalued by government policy. That s our philosophical view of how we sit right at the moment. John Malone, interview with Denver Business Journal, April 27, 2009 In the longer term, we have to wonder about the effect on the world of a glut of newly printed dollars, sterling and euros. The reason owning printing presses makes repayment easy is that it lets a nation cheapen its currency. But one would think that more units of currency per unit of GDP means a debasement of the currency, and thus reduced purchasing power (read: higher inflation). Howard Marks, memo to Oaktree clients, October 15, 2008 I m amazed at the amount of money the government is throwing at this thing. You don t even react anymore unless somebody s talking about $1 trillion. I genuinely admire the administration s courage in doing what it s doing, but not the wisdom of it. I look at the TALF (Term Asset-Backed Securities Loan Facility) program, for example, and it s almost a bribe to get people to put on more leverage I ask anyone to give me an example of an economy beefed up by huge amounts of quantitative easing that did not inflate tremendously when or if the economy improved. I think what we re doing now will either fail, or it will result in unbelievably high inflation and tragically, maybe both. That would mean a depression and explosive inflation, which is frightening. Julian Robertson, interview with Value Investor Insight, May 31, 2009 there is inflation now in many things. There s temporary deflation in raw material prices and in some property. But throughout history, whenever you ve had gigantic printing of money and spending of borrowed money, it has always led to higher prices. Unless something is dramatic, it s going to happen again. When? I don t know. It s already happening in some things. I don t know if you ve bought any sugar recently or some other things, prices are up and that will continue and it will get worse. Jim Rogers, interview with DailyMarkets.com, January 15, 2009 We will see inflation in assets we need (commodities) and deflation in assets we own. Peter Thiel, paraphrased from Ira Sohn conference notes, May 27, 2009 We ve had this massive fiscal stimulus, massive monetary stimulus, and it s hard to see how that doesn t translate into pretty substantial inflation, or at least pretty substantial risk of inflation. David Swensen, interview with WealthTrack, May 22, by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 7 of 87

8 Snapshot of 100 Companies with Real Estate Value By Type of Real Estate Owned Recent Market Enterprise LTM Price / Date of FY Price Value Value EBIT / Dividend Tangible Latest End Company / Ticker ($) ($mn) ($mn) EV Yield Book Quarter Date Website Apartments Equity Residential / EQR ,548 16,410 5% 8% 1.4x 3/31/09 12/31/09 AvalonBay / AVB ,890 8,601 2% 6% 1.6x 3/31/09 12/31/09 Essex Property / ESS ,810 3,655 4% 6% 2.2x 3/31/09 12/31/09 UDR / UDR ,690 5,170 3% 6% 1.2x 3/31/09 12/31/09 Camden Property / CPT ,621 4,446 0% 9% 1.2x 3/31/09 12/31/09 Aimco / AIV ,279 8,617 3% 4% 1.9x 3/31/09 12/31/09 BRE Properties / BRE ,265 3,216 5% 9% 1.3x 3/31/09 12/31/09 Home Properties / HME ,139 3,408 6% 8% 1.8x 3/31/09 12/31/09 American Campus / ACC ,227 2% 6% 1.2x 3/31/09 12/31/09 Post Properties / PPS ,755 nm 5% 0.7x 3/31/09 12/31/09 Colonial Properties / CLP ,111 0% 8% 0.4x 3/31/09 12/31/09 Manufactured Homes Equity Lifestyle / ELS ,032 2,626 4% 2% 11.8x 3/31/09 12/31/09 Shopping Centers Kimco Realty / KIM ,272 8,774 5% 2% 1.1x 3/31/09 12/31/09 Federal Realty / FRT ,309 5,047 6% 5% 3.1x 3/31/09 12/31/09 Regency Centers / REG ,930 5,448 6% 5% 2.1x 3/31/09 12/31/09 Weingarten Realty / WRI ,770 4,822 7% 7% 1.2x 3/31/09 12/31/09 Alexander's / ALX ,380 2,184 7% - 6.1x 3/31/09 12/31/09 Equity One / EQY ,193 2,431 3% 9% 1.3x 3/31/09 12/31/09 Tanger Outlet / SKT ,047 1,968 4% 5% 5.8x 3/31/09 12/31/09 Developers Divers. / DDR ,123 3% 14% 0.4x 3/31/09 12/31/09 Cedar Shopping / CDR ,393 5% - 0.5x 3/31/09 12/31/09 Kite Realty / KRG % 7% 0.3x 3/31/09 12/31/09 Regional Malls Simon Property / SPG ,815 30,348 5% 4% 4.4x 3/31/09 12/31/09 Macerich Company / MAC ,511 7,417 0% 1% 1.2x 3/31/09 12/31/09 Taubman Centers / TCO ,456 4,223 2% 6% nm 3/31/09 12/31/09 Forest City / FCE.A ,587 4% - 1.2x 1/31/09 1/31/10 General Growth / GGWPQ ,157 3% - 0.4x 3/31/09 12/31/09 CBL & Associates / CBL ,497 5% 7% 0.9x 3/31/09 12/31/09 Pennsylvania REIT / PEI ,838 3% 10% 0.4x 3/31/09 12/31/09 Offices Vornado Realty / VNO ,446 20,376 4% 3% 1.8x 3/31/09 12/31/09 Boston Properties / BXP ,177 12,146 4% 5% 1.7x 3/31/09 12/31/09 Brookfield Prop. / BPO ,391 17,103 5% 6% 1.2x 3/31/09 12/31/09 Digital Realty / DLR ,809 4,832 3% 4% 3.1x 3/31/09 12/31/09 Liberty Property / LRY ,575 5,012 6% 8% 1.3x 3/31/09 12/31/09 Duke Realty / DRE ,149 7,476 7% 7% 1.2x 3/31/09 12/31/09 Mack-Cali Realty / CLI ,812 4,060 6% 8% 1.2x 3/31/09 12/31/09 Corporate Office / OFC ,751 3,607 4% 5% 2.0x 3/31/09 12/31/09 Alexandria R. E. / ARE ,553 4,636 5% 4% 1.0x 3/31/09 12/31/09 SL Green Realty / SLG ,439 6,497 3% 6% 0.4x 3/31/09 12/31/09 Douglas Emmett / DEI ,156 4,404 5% 4% 0.7x 3/31/09 12/31/09 BioMed Realty / BMR ,574 5% 13% 0.6x 3/31/09 12/31/09 Kilroy Realty / KRC ,956 5% 7% 1.2x 3/31/09 12/31/09 Brandywine Realty / BDN ,329 4% 6% 0.4x 3/31/09 12/31/09 Cousins Properties / CUZ ,591 2% 10% 1.2x 3/31/09 12/31/09 DuPont Fabros / DFT ,063 4% - 0.6x 3/31/09 12/31/09 IRSA Inversiones / IRS % - nm 3/31/09 6/30/09 Maguire Properties / MPG ,797 2% - nm 3/31/09 12/31/09 Thomas Properties / TPGI % 3% 0.3x 3/31/09 12/31/09 [Portfolio w 100 companies Top100_browser MOI_macros_100.xls, MOI100A, then MOI100B, then MOI100C, then MOI100D] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 8 of 87

9 By Type of Real Estate Owned (continued) Recent Market Enterprise LTM Price / Date of FY Price Value Value EBIT / Dividend Tangible Latest End Company / Ticker ($) ($mn) ($mn) EV Yield Book Quarter Date Website Industrial REITs ProLogis / PLD ,090 13,644 7% 6% 0.7x 3/31/09 12/31/09 AMB Property / AMB ,866 6,059 nm 6% 1.1x 3/31/09 12/31/09 EastGroup Properties / EGP ,551 4% 6% 2.1x 3/31/09 12/31/09 DCT Industrial / DCT ,955 4% 7% 0.7x 3/31/09 12/31/09 Self-Storage REITs Public Storage / PSA ,468 14,902 5% 3% 2.2x 3/31/09 12/31/09 Extra Space Storage / EXR ,977 5% - 0.8x 3/31/09 12/31/09 U-Store-It / YSI ,213 4% 2% 0.5x 3/31/09 12/31/09 Triple Net Lease Realty Income / O ,345 4,023 4% 8% 2.0x 3/31/09 12/31/09 National Retail / NNN ,376 2,474 6% 9% 0.9x 3/31/09 12/31/09 MI Developments / MIM nm 7% 0.3x 3/31/09 12/31/09 Winthrop Realty / FUR % 10% 0.8x 3/31/09 12/31/09 Healthcare, Senior Living Facilities HCP / HCP ,946 12,149 1% 8% 1.4x 3/31/09 12/31/09 Ventas / VTR ,734 7,581 5% 7% 2.2x 3/31/09 12/31/09 Health Care REIT / HCN ,990 6,849 6% 8% 1.3x 3/31/09 12/31/09 Nationwide Health / NHP ,796 4,260 5% 6% 1.8x 3/31/09 12/31/09 Brookdale Senior / BKD ,145 3,657 nm - 1.8x 3/31/09 12/31/09 Healthcare Realty / HR ,030 1,968 2% 9% 1.3x 3/31/09 12/31/09 Skilled Healthcare / SKH % - nm 3/31/09 12/31/09 Assisted Living / ALC % - 0.7x 3/31/09 12/31/09 Cogdell Spencer / CSA nm 21% nm 3/31/09 12/31/09 Dynacq Healthcare / DYII nm - 0.8x 2/28/09 8/31/09 Land Developers St. Joe / JOE ,430 2,369 nm - 2.5x 3/31/09 12/31/09 Vail Resorts / MTN ,054 1,375 11% - 1.9x 4/30/09 7/31/09 Alexander & Baldwin / ALEX ,024 1,507 16% 5% 1.0x 3/31/09 12/31/09 Cresud / CRESY % 1% nm 9/30/08 6/30/09 Tejon Ranch / TRC % - 2.8x 3/31/09 12/31/09 Consolidated-Tomoka / CTO % 1% 1.7x 3/31/09 12/31/09 Maui Land Pineapple / MLP nm - 3.5x 3/31/09 12/31/09 Homebuilders D.R. Horton / DHI ,033 4,430 nm 2% 1.2x 3/31/09 9/30/09 NVR / NVR ,921 2,620 5% - 2.0x 3/31/09 12/31/09 Toll Brothers / TOL ,781 3,279 nm - 0.9x 4/30/09 10/31/09 M.D.C. Holdings / MDC , nm 3% 1.3x 3/31/09 12/31/09 Lennar / LEN ,280 2,985 nm 2% 0.5x 2/28/09 11/30/09 KB Home / KBH ,241 1,958 nm 2% 1.6x 2/28/09 11/30/09 Centex / CTX ,056 2,915 nm - 1.2x 3/31/09 3/31/10 Ryland Group / RYL nm 1% 1.1x 3/31/09 12/31/09 Meritage Homes / MTH nm - 1.1x 3/31/09 12/31/09 California Coastal / CALC nm - 0.2x 3/31/09 12/31/09 Retailers with Large Real Estate Holdings Target / TGT ,377 47,775 9% 2% 2.2x 4/30/09 1/31/10 Sears Holdings / SHLD ,267 10,170 4% - 1.7x 4/30/09 1/31/10 PriceSmart / PSMT % 3% 2.1x 2/28/09 8/31/09 Natuzzi / NTZ nm - 0.2x 3/31/09 12/31/09 Syms / SYMS nm - 0.5x 2/28/09 2/28/10 Various Businesses with Real Estate Holdings Panasonic / PC ,234 24,292 3% 3% 1.0x 3/31/09 3/31/10 CB Richard Ellis / CBG ,599 5,480 nm - nm 3/31/09 12/31/09 Steak n Shake / SNS nm - 0.8x 3/31/09 9/30/09 Playboy Enterprises / PLA nm - nm 3/31/09 12/31/09 Steinway Musical / LVB % - 0.8x 3/31/09 12/31/09 Great Wolf Resorts / WOLF nm - 0.4x 3/31/09 12/31/09 Bridgford Foods / BRID nm - 2.2x 4/17/09 10/31/09 Grubb & Ellis / GBE nm 45% nm 3/31/09 12/31/09 Silverleaf Resorts / SVLF % - 0.3x 3/31/09 12/31/09 [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 9 of 87

10 By Market Value Recent Market Enterprise Date of FY Price Value Value Latest End Company / Ticker ($) ($mn) ($mn) Quarter Date Website Target / TGT ,377 47,775 4/30/09 1/31/10 Panasonic / PC ,234 24,292 3/31/09 3/31/10 Simon Property / SPG ,815 30,348 3/31/09 12/31/09 Public Storage / PSA ,468 14,902 3/31/09 12/31/09 Vornado Realty / VNO ,446 20,376 3/31/09 12/31/09 Sears Holdings / SHLD ,267 10,170 4/30/09 1/31/10 Equity Residential / EQR ,548 16,410 3/31/09 12/31/09 Boston Properties / BXP ,177 12,146 3/31/09 12/31/09 HCP / HCP ,946 12,149 3/31/09 12/31/09 AvalonBay / AVB ,890 8,601 3/31/09 12/31/09 Ventas / VTR ,734 7,581 3/31/09 12/31/09 Kimco Realty / KIM ,272 8,774 3/31/09 12/31/09 ProLogis / PLD ,090 13,644 3/31/09 12/31/09 Health Care REIT / HCN ,990 6,849 3/31/09 12/31/09 Brookfield Prop. / BPO ,391 17,103 3/31/09 12/31/09 Federal Realty / FRT ,309 5,047 3/31/09 12/31/09 D.R. Horton / DHI ,033 4,430 3/31/09 9/30/09 Regency Centers / REG ,930 5,448 3/31/09 12/31/09 NVR / NVR ,921 2,620 3/31/09 12/31/09 AMB Property / AMB ,866 6,059 3/31/09 12/31/09 Digital Realty / DLR ,809 4,832 3/31/09 12/31/09 Nationwide Health / NHP ,796 4,260 3/31/09 12/31/09 Toll Brothers / TOL ,781 3,279 4/30/09 10/31/09 CB Richard Ellis / CBG ,599 5,480 3/31/09 12/31/09 Liberty Property / LRY ,575 5,012 3/31/09 12/31/09 St. Joe / JOE ,430 2,369 3/31/09 12/31/09 Realty Income / O ,345 4,023 3/31/09 12/31/09 Duke Realty / DRE ,149 7,476 3/31/09 12/31/09 Mack-Cali Realty / CLI ,812 4,060 3/31/09 12/31/09 Essex Property / ESS ,810 3,655 3/31/09 12/31/09 Weingarten Realty / WRI ,770 4,822 3/31/09 12/31/09 Corporate Office / OFC ,751 3,607 3/31/09 12/31/09 UDR / UDR ,690 5,170 3/31/09 12/31/09 Camden Property / CPT ,621 4,446 3/31/09 12/31/09 Alexandria R. E. / ARE ,553 4,636 3/31/09 12/31/09 Macerich Company / MAC ,511 7,417 3/31/09 12/31/09 Taubman Centers / TCO ,456 4,223 3/31/09 12/31/09 SL Green Realty / SLG ,439 6,497 3/31/09 12/31/09 slgreen.com/ Alexander's / ALX ,380 2,184 3/31/09 12/31/09 National Retail / NNN ,376 2,474 3/31/09 12/31/09 M.D.C. Holdings / MDC , /31/09 12/31/09 Lennar / LEN ,280 2,985 2/28/09 11/30/09 Aimco / AIV ,279 8,617 3/31/09 12/31/09 BRE Properties / BRE ,265 3,216 3/31/09 12/31/09 KB Home / KBH ,241 1,958 2/28/09 11/30/09 Equity One / EQY ,193 2,431 3/31/09 12/31/09 Douglas Emmett / DEI ,156 4,404 3/31/09 12/31/09 Brookdale Senior / BKD ,145 3,657 3/31/09 12/31/09 Home Properties / HME ,139 3,408 3/31/09 12/31/09 Centex / CTX ,056 2,915 3/31/09 3/31/10 [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 10 of 87

11 By Market Value (continued) Recent Market Enterprise Date of FY Price Value Value Latest End Company / Ticker ($) ($mn) ($mn) Quarter Date Website Vail Resorts / MTN ,054 1,375 4/30/09 7/31/09 Tanger Outlet / SKT ,047 1,968 3/31/09 12/31/09 Equity Lifestyle / ELS ,032 2,626 3/31/09 12/31/09 Healthcare Realty / HR ,030 1,968 3/31/09 12/31/09 Alexander & Baldwin / ALEX ,024 1,507 3/31/09 12/31/09 Forest City / FCE.A ,587 1/31/09 1/31/10 American Campus / ACC ,227 3/31/09 12/31/09 Developers Divers. / DDR ,123 3/31/09 12/31/09 BioMed Realty / BMR ,574 3/31/09 12/31/09 EastGroup Properties / EGP ,551 3/31/09 12/31/09 DCT Industrial / DCT ,955 3/31/09 12/31/09 Extra Space Storage / EXR ,977 3/31/09 12/31/09 Ryland Group / RYL /31/09 12/31/09 Kilroy Realty / KRC ,956 3/31/09 12/31/09 Post Properties / PPS ,755 3/31/09 12/31/09 General Growth / GGWPQ ,157 3/31/09 12/31/09 Brandywine Realty / BDN ,329 3/31/09 12/31/09 Meritage Homes / MTH /31/09 12/31/09 Cousins Properties / CUZ ,591 3/31/09 12/31/09 PriceSmart / PSMT /28/09 8/31/09 Cresud / CRESY /30/08 6/30/09 Tejon Ranch / TRC /31/09 12/31/09 CBL & Associates / CBL ,497 3/31/09 12/31/09 MI Developments / MIM /31/09 12/31/09 DuPont Fabros / DFT ,063 3/31/09 12/31/09 Colonial Properties / CLP ,111 3/31/09 12/31/09 IRSA Inversiones / IRS /31/09 6/30/09 Skilled Healthcare / SKH /31/09 12/31/09 U-Store-It / YSI ,213 3/31/09 12/31/09 Pennsylvania REIT / PEI ,838 3/31/09 12/31/09 Steak n Shake / SNS /31/09 9/30/09 Cedar Shopping / CDR ,393 3/31/09 12/31/09 Consolidated-Tomoka / CTO /31/09 12/31/09 Assisted Living / ALC /31/09 12/31/09 Winthrop Realty / FUR /31/09 12/31/09 Kite Realty / KRG /31/09 12/31/09 Natuzzi / NTZ /31/09 12/31/09 Playboy Enterprises / PLA /31/09 12/31/09 Steinway Musical / LVB /31/09 12/31/09 Syms / SYMS /28/09 2/28/10 Great Wolf Resorts / WOLF /31/09 12/31/09 Cogdell Spencer / CSA /31/09 12/31/09 Bridgford Foods / BRID /17/09 10/31/09 Maui Land Pineapple / MLP /31/09 12/31/09 Grubb & Ellis / GBE /31/09 12/31/09 Dynacq Healthcare / DYII /28/09 8/31/09 Maguire Properties / MPG ,797 3/31/09 12/31/09 Silverleaf Resorts / SVLF /31/09 12/31/09 Thomas Properties / TPGI /31/09 12/31/09 California Coastal / CALC /31/09 12/31/09 [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 11 of 87

12 Stock Price Performance (sorted by price decline since December 31, 2008) Recent to 52-Wk Price Performance Market Enterprise Price Low High Since Since Since Value Value Company / Ticker Property Type ($) ($) ($) 12/31/08 12/29/06 12/31/04 ($mn) ($mn) Cogdell Spencer / CSA Healthcare % 376% -55% -81% na Maui Land Pineapple / MLP Land % 327% -40% -76% -80% Kilroy Realty / KRC Offices % 152% -38% -73% -51% 687 1,956 Kimco Realty / KIM Shopping % 321% -38% -75% -61% 4,272 8,774 Kite Realty / KRG Shopping % 295% -37% -81% -77% Steinway Musical / LVB Miscellaneous % 172% -37% -65% -62% Thomas Properties / TPGI Offices % 612% -36% -90% -87% Alexandria R. E. / ARE Offices % 195% -35% -61% -47% 1,553 4,636 ProLogis / PLD Industrial % 554% -33% -85% -79% 4,090 13,644 Assisted Living / ALC Healthcare % 176% -31% -71% na Cedar Shopping / CDR Shopping % 183% -30% -69% -65% 223 1,393 Syms / SYMS Retailer % 183% -29% -68% -48% Weingarten Realty / WRI Shopping % 170% -28% -68% -63% 1,770 4,822 Douglas Emmett / DEI Offices % 165% -27% -64% na 1,156 4,404 Maguire Properties / MPG Offices % >999% -27% -97% -96% 51 4,797 Healthcare Realty / HR Healthcare % 84% -26% -56% -57% 1,030 1,968 Grubb & Ellis / GBE Miscellaneous % 490% -26% -92% -80% Cousins Properties / CUZ Offices % 180% -25% -70% -66% 536 1,591 Pennsylvania REIT / PEI Malls % 368% -23% -85% -87% 232 2,838 Equity One / EQY Shopping % 81% -22% -48% -42% 1,193 2,431 Regency Centers / REG Shopping % 123% -22% -53% -34% 2,930 5,448 Centex / CTX Homebuilder % 121% -20% -85% -86% 1,056 2,915 Equity Residential / EQR Apartments % 105% -20% -53% -34% 6,548 16,410 Vornado Realty / VNO Offices % 123% -20% -60% -36% 8,446 20,376 Toll Brothers / TOL Homebuilder % 62% -20% -46% -50% 2,781 3,279 UDR / UDR Apartments % 154% -19% -65% -55% 1,690 5,170 Dynacq Healthcare / DYII Healthcare % 117% -18% 136% -30% Extra Space Storage / EXR Self-Storage % 108% -17% -53% -36% 737 1,977 AMB Property / AMB Industrial % 193% -16% -67% -51% 2,866 6,059 Skilled Healthcare / SKH Healthcare % 142% -16% na na HCP / HCP Healthcare % 80% -16% -36% -15% 5,946 12,149 PriceSmart / PSMT Retailer % 44% -15% -2% 132% Health Care REIT / HCN Healthcare % 50% -15% -17% -6% 3,990 6,849 Public Storage / PSA Self-Storage % 51% -15% -31% 21% 11,468 14,902 Home Properties / HME Apartments % 75% -15% -42% -20% 1,139 3,408 Consolidated-Tomoka / CTO Land % 55% -14% -55% -24% Essex Property / ESS Apartments % 97% -14% -49% -21% 1,810 3,655 DCT Industrial / DCT Industrial % 111% -13% -63% na 773 1,955 Natuzzi / NTZ Retailer % 100% -13% -75% -81% Tanger Outlet / SKT Shopping % 41% -13% -16% 24% 1,047 1,968 Duke Realty / DRE Offices % 183% -12% -77% -72% 2,149 7,476 BRE Properties / BRE Apartments % 277% -12% -62% -39% 1,265 3,216 BioMed Realty / BMR Offices % 184% -11% -64% -53% 845 2,574 Ventas / VTR Healthcare % 72% -10% -29% 10% 4,734 7,581 Federal Realty / FRT Shopping % 70% -10% -34% 8% 3,309 5,047 Winthrop Realty / FUR Triple Net % 122% -10% -71% -48% Brandywine Realty / BDN Offices % 166% -9% -79% -76% 622 3,329 Post Properties / PPS Apartments % 134% -8% -67% -57% 670 1,755 Lennar / LEN Homebuilder % 112% -8% -85% -86% 1,280 2,985 Boston Properties / BXP Offices % 108% -7% -54% -21% 6,177 12,146 [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 12 of 87

13 Stock Price Performance (sorted by price decline since December 31, 2008) (continued) Recent to 52-Wk Price Performance Market Enterprise Price Low High Since Since Since Value Value Company / Ticker Property Type ($) ($) ($) 12/31/08 12/29/06 12/31/04 ($mn) ($mn) Colonial Properties / CLP Apartments % 212% -7% -83% -80% 379 2,111 EastGroup Properties / EGP Industrial % 51% -7% -38% -13% 837 1,551 Forest City / FCE.A Malls % 547% -7% -89% -78% 979 9,587 M.D.C. Holdings / MDC Homebuilder % 64% -6% -50% -57% 1, Aimco / AIV Apartments % 300% -5% -81% -72% 1,279 8,617 Ryland Group / RYL Homebuilder % 79% -5% -69% -71% Nationwide Health / NHP Healthcare % 47% -5% -10% 15% 2,796 4,260 U-Store-It / YSI Self-Storage % 209% -4% -79% -75% 249 1,213 Camden Property / CPT Apartments % 83% -4% -59% -41% 1,621 4,446 CBL & Associates / CBL Malls % 321% -4% -86% -84% 446 6,497 Mack-Cali Realty / CLI Offices % 82% -4% -54% -49% 1,812 4,060 SL Green Realty / SLG Offices % 276% -3% -81% -58% 1,439 6,497 Realty Income / O Triple Net % 55% -3% -19% -11% 2,345 4,023 Corporate Office / OFC Offices % 43% -1% -40% 4% 1,751 3,607 Alexander & Baldwin / ALEX Land % 96% 0% -44% -41% 1,024 1,507 National Retail / NNN Triple Net % 45% 0% -25% -16% 1,376 2,474 AvalonBay / AVB Apartments % 85% 1% -53% -19% 4,890 8,601 Simon Property / SPG Malls % 97% 2% -47% -16% 13,815 30,348 KB Home / KBH Homebuilder % 80% 3% -73% -73% 1,241 1,958 Alexander's / ALX Shopping % 60% 6% -36% 26% 1,380 2,184 Equity Lifestyle / ELS Mfd Homes % 37% 6% -25% 14% 1,032 2,626 Liberty Property / LRY Offices % 83% 7% -50% -44% 2,575 5,012 Taubman Centers / TCO Malls % 141% 8% -46% -9% 1,456 4,223 St. Joe / JOE Land % 62% 8% -51% -59% 2,430 2,369 Macerich Company / MAC Malls % 262% 8% -77% -69% 1,511 7,417 American Campus / ACC Apartments % 67% 8% -22% -1% 942 2,227 Vail Resorts / MTN Land % 80% 9% -35% 29% 1,054 1,375 Panasonic / PC Miscellaneous % 70% 10% -32% -15% 28,234 24,292 NVR / NVR Homebuilder % 27% 11% -22% -34% 2,921 2,620 MI Developments / MIM Triple Net % 211% 11% -77% -72% Brookfield Prop. / BPO Offices % 155% 12% -67% -48% 3,391 17,103 Digital Realty / DLR Offices % 39% 12% 8% 174% 2,809 4,832 IRSA Inversiones / IRS Offices % 175% 14% -71% -56% Developers Divers. / DDR Shopping % 647% 14% -91% -87% 853 7,123 Cresud / CRESY Land % 49% 15% -40% -31% Tejon Ranch / TRC Land % 39% 16% -49% -30% Target / TGT Retailer % 47% 17% -29% -22% 30,377 47,775 Playboy Enterprises / PLA Miscellaneous % 106% 31% -75% -77% Steak n Shake / SNS Miscellaneous % 54% 32% -55% -61% D.R. Horton / DHI Homebuilder % 62% 35% -64% -68% 3,033 4,430 Meritage Homes / MTH Homebuilder % 71% 41% -64% -69% General Growth / GGWPQ Malls % >999% 60% -96% -94% ,157 Sears Holdings / SHLD Retailer % 58% 77% -59% -30% 8,267 10,170 Great Wolf Resorts / WOLF Miscellaneous % 130% 81% -80% -88% Silverleaf Resorts / SVLF Miscellaneous % 84% 83% -70% -4% Bridgford Foods / BRID Miscellaneous % 8% 93% 17% -18% Brookdale Senior / BKD Healthcare % 141% 101% -77% na 1,145 3,657 CB Richard Ellis / CBG Miscellaneous % 122% 127% -70% -12% 2,599 5,480 California Coastal / CALC Homebuilder % 186% 190% -93% -94% DuPont Fabros / DFT Offices % 107% 357% na na 383 1,063 [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 13 of 87

14 Free Cash Flow (sorted by LTM free cash flow yield) The following table shows companies with an LTM FCF yield of 3% or greater. Market Enterprise Tangible LTM Tangible Price Value Value Book Value FCF Book Value / LTM Company / Ticker ($) ($mn) ($mn) ($mn) ($mn) Market Value FCF Yield Centex / CTX ,056 2, ,376 86% 130% Ryland Group / RYL % 61% D.R. Horton / DHI ,033 4,430 2,631 1,844 87% 61% Meritage Homes / MTH % 46% M.D.C. Holdings / MDC , , % 36% KB Home / KBH ,241 1, % 34% Cogdell Spencer / CSA (42) 26-51% 31% Dynacq Healthcare / DYII % 30% Kite Realty / KRG % 28% Lennar / LEN ,280 2,985 2, % 26% U-Store-It / YSI , % 20% Toll Brothers / TOL ,781 3,279 3, % 17% DuPont Fabros / DFT , % 16% ProLogis / PLD ,090 13,644 6, % 16% SL Green Realty / SLG ,439 6,497 3, % 14% Brandywine Realty / BDN ,329 1, % 13% NVR / NVR ,921 2,620 1, % 13% Duke Realty / DRE ,149 7,476 1, % 13% Taubman Centers / TCO ,456 4,223 (209) % 13% Vail Resorts / MTN ,054 1, % 12% Sears Holdings / SHLD ,267 10,170 4,747 1,024 57% 12% Steak n Shake / SNS % 12% Winthrop Realty / FUR % 11% California Coastal / CALC % 11% Mack-Cali Realty / CLI ,812 4,060 1, % 10% Douglas Emmett / DEI ,156 4,404 1, % 10% Assisted Living / ALC % 10% Equity Lifestyle / ELS ,032 2, % 10% Realty Income / O ,345 4,023 1, % 9% Kilroy Realty / KRC , % 9% Public Storage / PSA ,468 14,902 5, % 8% CBL & Associates / CBL , % 8% Simon Property / SPG ,815 30,348 3,107 1,059 22% 8% Regency Centers / REG ,930 5,448 1, % 7% Ventas / VTR ,734 7,581 2, % 7% HCP / HCP ,946 12,149 4, % 7% Skilled Healthcare / SKH (56) 18-21% 7% Digital Realty / DLR ,809 4, % 7% Vornado Realty / VNO ,446 20,376 4, % 6% PriceSmart / PSMT % 5% Alexander & Baldwin / ALEX ,024 1,507 1, % 5% CB Richard Ellis / CBG ,599 5,480 (1,490) % 5% Developers Divers. / DDR ,123 2, % 5% Target / TGT ,377 47,775 14,119 1,552 46% 5% Camden Property / CPT ,621 4,446 1, % 5% Equity One / EQY ,193 2, % 4% Bridgford Foods / BRID % 4% Federal Realty / FRT ,309 5,047 1, % 4% DCT Industrial / DCT ,955 1, % 3% St. Joe / JOE ,430 2, % 3% [MFI100 PMR_Profile_Valuation_Sentenc PMR Profile valuation sentence.xls issues/pmr/200904/pmr Profile valuation sentence macro.xls, PMRprofile1, then PMRprofile 2] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 14 of 87

15 P/E Multiples (sorted by P/E based on estimated EPS for next fiscal year) The following table shows the 50 cheapest companies among the 100 companies shown in this report, as measured by next FY P/E. Recent Market Enterprise P/E (A) P/E (Estimated) Price Value Value Last This Next In Company / Ticker Property Type ($) ($mn) ($mn) FY FY FY 2 Yrs California Coastal / CALC Homebuilder nm 1x 2x na Skilled Healthcare / SKH Healthcare x 7x 6x 6x Assisted Living / ALC Healthcare x 13x 10x na CBL & Associates / CBL Malls ,497 >99x 31x 13x nm Target / TGT Retailer ,377 47,775 14x 14x 13x 11x CB Richard Ellis / CBG Miscellaneous ,599 5,480 nm 23x 13x 9x Playboy Enterprises / PLA Miscellaneous nm nm 16x na PriceSmart / PSMT Retailer x 12x 16x 13x National Retail / NNN Triple Net ,376 2,474 13x 15x 16x na Alexander & Baldwin / ALEX Land ,024 1,507 11x 30x 17x 14x Alexandria R. E. / ARE Offices ,553 4,636 15x 16x 19x na Ventas / VTR Healthcare ,734 7,581 23x 19x 20x 24x NVR / NVR Homebuilder ,921 2,620 30x 29x 21x 10x Realty Income / O Triple Net ,345 4,023 25x 23x 21x na Health Care REIT / HCN Healthcare ,990 6,849 27x 20x 21x 16x Nationwide Health / NHP Healthcare ,796 4,260 27x 18x 21x 20x Kimco Realty / KIM Shopping ,272 8,774 17x 25x 22x 15x Liberty Property / LRY Offices ,575 5,012 18x 22x 23x 30x Weingarten Realty / WRI Shopping ,770 4,822 29x 21x 26x 23x HCP / HCP Healthcare ,946 12,149 30x 28x 26x 22x Regency Centers / REG Shopping ,930 5,448 29x 28x 27x 24x Boston Properties / BXP Offices ,177 12,146 49x 30x 27x 25x AvalonBay / AVB Apartments ,890 8,601 46x 26x 28x 27x Steak n Shake / SNS Miscellaneous nm >99x 28x na Federal Realty / FRT Shopping ,309 5,047 29x 37x 28x 27x BioMed Realty / BMR Offices ,574 16x 32x 29x 23x Equity One / EQY Shopping ,193 2,431 29x 14x 29x 31x Equity Lifestyle / ELS Mfd Homes ,032 2,626 55x >99x 30x na Public Storage / PSA Self-Storage ,468 14,902 16x 25x 31x 29x Simon Property / SPG Malls ,815 30,348 29x 33x 31x 25x Sears Holdings / SHLD Retailer ,267 10,170 >99x 31x 36x 41x SL Green Realty / SLG Offices ,439 6,497 81x 25x 37x 35x Consolidated-Tomoka / CTO Land x >99x 37x 38x Extra Space Storage / EXR Self-Storage ,977 14x 16x 39x 43x Tanger Outlet / SKT Shopping ,047 1,968 46x 23x 40x 30x Home Properties / HME Apartments ,139 3,408 34x 48x 40x na Mack-Cali Realty / CLI Offices ,812 4,060 30x 35x 41x 45x Corporate Office / OFC Offices ,751 3,607 38x 48x 42x 41x EastGroup Properties / EGP Industrial ,551 27x 34x 44x na Syms / SYMS Retailer nm >99x 45x 23x Taubman Centers / TCO Malls ,456 4,223 nm 33x 46x 36x BRE Properties / BRE Apartments ,265 3,216 24x 32x 48x na Essex Property / ESS Apartments ,810 3,655 31x 39x 49x na Vail Resorts / MTN Land ,054 1,375 11x 22x 66x 40x Tejon Ranch / TRC Land >99x 78x 70x na Digital Realty / DLR Offices ,809 4,832 90x 84x 74x 49x Healthcare Realty / HR Healthcare ,030 1,968 50x 27x 87x >99x AMB Property / AMB Industrial ,866 6,059 nm nm >99x >99x Camden Property / CPT Apartments ,621 4,446 nm >99x >99x >99x Macerich Company / MAC Malls ,511 7,417 15x 42x >99x >99x [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 15 of 87

16 Historical and Prospective EPS (in alphabetical order) Recent FY EPS (Actual) EPS (Estimated) Price End 2 Yrs Last This Next In Company / Ticker Property Type ($) Date Ago FY FY FY 2 Yrs Aimco / AIV Apartments /31/09 (0.85) (1.51) (1.08) (1.32) (1.76) Alexander & Baldwin / ALEX Land /31/ Alexander's / ALX Shopping /31/ na na na Alexandria R. E. / ARE Offices /31/ na AMB Property / AMB Industrial /31/ (0.68) (0.73) American Campus / ACC Apartments /31/09 (0.07) (0.35) (0.06) 0.00 (0.04) Assisted Living / ALC Healthcare /31/ na AvalonBay / AVB Apartments /31/ BioMed Realty / BMR Offices /31/ Boston Properties / BXP Offices /31/ Brandywine Realty / BDN Offices /31/ (0.12) (0.21) na BRE Properties / BRE Apartments /31/ na Bridgford Foods / BRID Miscellaneous /31/09 (0.03) (1.30) na na na Brookdale Senior / BKD Healthcare /31/09 (1.60) (3.67) (0.84) (0.68) (0.69) Brookfield Prop. / BPO Offices /31/ na na na California Coastal / CALC Homebuilder /31/09 (1.73) (4.10) na Camden Property / CPT Apartments /31/ (0.25) CB Richard Ellis / CBG Miscellaneous /31/ (4.86) CBL & Associates / CBL Malls /31/ (0.05) Cedar Shopping / CDR Shopping /31/ (0.09) na Centex / CTX Homebuilder /31/10 (21.71) (11.59) (3.32) (0.67) 0.39 Cogdell Spencer / CSA Healthcare /31/09 (0.57) (0.37) (2.48) (0.16) na Colonial Properties / CLP Apartments /31/ (2.09) (0.46) (1.00) na Consolidated-Tomoka / CTO Land /31/ Corporate Office / OFC Offices /31/ Cousins Properties / CUZ Offices /31/ (0.16) na Cresud / CRESY Land /30/ (0.11) (0.02) 0.53 D.R. Horton / DHI Homebuilder /30/09 (2.27) (8.34) (0.96) (0.07) 0.36 DCT Industrial / DCT Industrial /31/ (0.05) 0.00 (0.04) (0.03) Developers Divers. / DDR Shopping /31/ (0.86) 0.11 (0.15) (0.18) Digital Realty / DLR Offices /31/ Douglas Emmett / DEI Offices /31/09 (0.12) (0.23) (0.27) (0.28) (0.22) Duke Realty / DRE Offices /31/ (0.27) (0.31) (0.45) DuPont Fabros / DFT Offices /31/09 (2.85) 0.54 na na na Dynacq Healthcare / DYII Healthcare /31/ na na na EastGroup Properties / EGP Industrial /31/ na Equity Lifestyle / ELS Mfd Homes /31/ na Equity One / EQY Shopping /31/ Equity Residential / EQR Apartments /31/ (0.02) (0.07) Essex Property / ESS Apartments /31/ na Extra Space Storage / EXR Self-Storage /31/ Federal Realty / FRT Shopping /31/ Forest City / FCE.A Malls /31/10 (0.13) (1.19) (0.67) (0.66) na General Growth / GGWPQ Malls /31/ (0.08) na na na Great Wolf Resorts / WOLF Miscellaneous /31/09 (0.31) (1.32) (0.59) (0.67) na Grubb & Ellis / GBE Miscellaneous /31/ (4.40) na na na HCP / HCP Healthcare /31/ Health Care REIT / HCN Healthcare /31/ Healthcare Realty / HR Healthcare /31/ Home Properties / HME Apartments /31/ na [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 16 of 87

17 Historical and Prospective EPS (in alphabetical order) (continued) Recent FY EPS (Actual) EPS (Estimated) Price End 2 Yrs Last This Next In Company / Ticker Property Type ($) Date Ago FY FY FY 2 Yrs IRSA Inversiones / IRS Offices /30/ na na na KB Home / KBH Homebuilder /30/09 (18.33) (12.59) (2.39) (0.03) 1.39 Kilroy Realty / KRC Offices /31/ na na na Kimco Realty / KIM Shopping /31/ Kite Realty / KRG Shopping /31/ na Lennar / LEN Homebuilder /30/09 (12.31) (7.00) (2.84) (0.77) 0.62 Liberty Property / LRY Offices /31/ M.D.C. Holdings / MDC Homebuilder /31/09 (13.94) (8.24) (2.30) (0.75) 0.86 Macerich Company / MAC Malls /31/ Mack-Cali Realty / CLI Offices /31/ Maguire Properties / MPG Offices /31/09 (2.97) (3.94) na na na Maui Land Pineapple / MLP Land /31/ (9.98) (4.28) (3.26) (3.12) Meritage Homes / MTH Homebuilder /31/09 (11.01) (9.95) (2.65) (0.33) 0.79 MI Developments / MIM Triple Net /31/ na na na National Retail / NNN Triple Net /31/ na Nationwide Health / NHP Healthcare /31/ Natuzzi / NTZ Retailer /31/ (1.53) na na na NVR / NVR Homebuilder /31/ Panasonic / PC Miscellaneous /31/ (1.88) 1.06 na na Pennsylvania REIT / PEI Malls /31/ (0.30) (1.48) (2.06) (2.17) Playboy Enterprises / PLA Miscellaneous /31/ (4.69) (0.52) 0.18 na Post Properties / PPS Apartments /31/ (2.35) 0.42 (0.26) na PriceSmart / PSMT Retailer /31/ ProLogis / PLD Industrial /31/ (0.84) 0.60 (0.08) (0.20) Public Storage / PSA Self-Storage /31/ Realty Income / O Triple Net /31/ na Regency Centers / REG Shopping /31/ Ryland Group / RYL Homebuilder /31/09 (7.92) (9.33) (4.10) (0.67) 1.42 Sears Holdings / SHLD Retailer /31/ Silverleaf Resorts / SVLF Miscellaneous /31/ na na na Simon Property / SPG Malls /31/ Skilled Healthcare / SKH Healthcare /31/ SL Green Realty / SLG Offices /31/ St. Joe / JOE Land /31/ (0.39) (0.26) (0.04) na Steak n Shake / SNS Miscellaneous /30/ (0.81) na Steinway Musical / LVB Miscellaneous /31/ na na Syms / SYMS Retailer /28/ (0.23) Tanger Outlet / SKT Shopping /31/ Target / TGT Retailer /31/ Taubman Centers / TCO Malls /31/ (1.64) Tejon Ranch / TRC Land /31/ na Thomas Properties / TPGI Offices /31/09 (0.04) (0.23) na na na Toll Brothers / TOL Homebuilder /31/ (1.88) (1.70) (0.37) 0.51 UDR / UDR Apartments /31/ (0.42) (0.52) (0.64) (0.71) U-Store-It / YSI Self-Storage /31/09 (0.33) (0.30) (0.18) (0.24) (0.39) Vail Resorts / MTN Land /31/ Ventas / VTR Healthcare /31/ Vornado Realty / VNO Offices /31/ na na na Weingarten Realty / WRI Shopping /31/ Winthrop Realty / FUR Triple Net /31/ (4.72) na na na [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 17 of 87

18 Latest Quarterly EPS Surprise (sorted by magnitude of surprise) Recent Market Date of Latest EPS Surprise Price Value Latest Date EPS EPS % Dividend Company / Ticker Property Type ($) ($mn) Quarter (Actual) (Estimated) Diff. Yield Cousins Properties / CUZ Offices /31/09 5/5/ (0.07) nm 9.6% Sears Holdings / SHLD Retailer ,267 4/30/09 5/21/ (0.88) nm - Cedar Shopping / CDR Shopping /31/09 5/5/ nm - Steak n Shake / SNS Miscellaneous /31/09 4/24/ (0.10) nm - CBL & Associates / CBL Malls /31/09 4/29/ (0.13) nm 7.0% DCT Industrial / DCT Industrial /31/09 5/7/ (0.03) nm 7.3% Kite Realty / KRG Shopping /31/09 5/7/ (0.02) nm 6.9% Post Properties / PPS Apartments /31/09 5/4/ (0.13) nm 5.3% Alexander & Baldwin / ALEX Land ,024 3/31/09 4/30/ >99% 5.0% BioMed Realty / BMR Offices /31/09 4/29/ >99% 12.9% California Coastal / CALC Homebuilder /31/09 5/14/ >99% - Developers Divers. / DDR Shopping /31/09 4/23/ >99% 14.4% Equity One / EQY Shopping ,193 3/31/09 5/6/ >99% 8.7% Equity Residential / EQR Apartments ,548 3/31/09 4/29/ >99% 8.1% Essex Property / ESS Apartments ,810 3/31/09 4/29/ >99% 6.3% Macerich Company / MAC Malls ,511 3/31/09 5/5/ >99% 1.2% Public Storage / PSA Self-Storage ,468 3/31/09 5/7/ >99% 3.3% SL Green Realty / SLG Offices ,439 3/31/09 4/27/ >99% 6.0% Tanger Outlet / SKT Shopping ,047 3/31/09 4/23/ >99% 4.7% Taubman Centers / TCO Malls ,456 3/31/09 4/29/ >99% 6.1% Weingarten Realty / WRI Shopping ,770 3/31/09 4/27/ % 6.8% Simon Property / SPG Malls ,815 3/31/09 5/1/ % 4.4% Home Properties / HME Apartments ,139 3/31/09 5/6/ % 7.7% Nationwide Health / NHP Healthcare ,796 3/31/09 5/5/ % 6.5% Corporate Office / OFC Offices ,751 3/31/09 4/28/ % 4.9% Alexandria R. E. / ARE Offices ,553 3/31/09 5/7/ % 3.5% Healthcare Realty / HR Healthcare ,030 3/31/09 5/11/ % 8.9% Ventas / VTR Healthcare ,734 3/31/09 5/5/ % 6.8% Digital Realty / DLR Offices ,809 3/31/09 4/28/ % 3.6% Camden Property / CPT Apartments ,621 3/31/09 4/28/ % 9.3% NVR / NVR Homebuilder ,921 3/31/09 4/21/ % - Health Care REIT / HCN Healthcare ,990 3/31/09 5/4/ % 7.6% Target / TGT Retailer ,377 4/30/09 5/20/ % 1.7% PriceSmart / PSMT Retailer /28/09 4/8/ % 2.9% Mack-Cali Realty / CLI Offices ,812 3/31/09 4/30/ % 7.6% Vail Resorts / MTN Land ,054 4/30/09 6/4/ % - Skilled Healthcare / SKH Healthcare /31/09 5/5/ % - EastGroup Properties / EGP Industrial /31/09 4/28/ % 6.3% National Retail / NNN Triple Net ,376 3/31/09 5/5/ % 8.7% Douglas Emmett / DEI Offices ,156 3/31/09 5/5/09 (0.02) (0.09) nm 4.2% U-Store-It / YSI Self-Storage /31/09 5/7/09 (0.04) (0.05) nm 2.3% Great Wolf Resorts / WOLF Miscellaneous /31/09 5/5/09 (0.09) (0.12) nm - Brookdale Senior / BKD Healthcare ,145 3/31/09 5/6/09 (0.13) (0.33) nm - Aimco / AIV Apartments ,279 3/31/09 5/1/09 (0.33) (0.46) nm 3.7% Meritage Homes / MTH Homebuilder /31/09 4/27/09 (0.60) (1.18) nm - KB Home / KBH Homebuilder ,241 2/28/09 3/27/09 (0.75) (0.81) nm 1.8% UDR / UDR Apartments ,690 3/31/09 5/5/09 (0.10) (0.10) nm 6.4% Regency Centers / REG Shopping ,930 3/31/09 5/6/ % 5.1% Extra Space Storage / EXR Self-Storage /31/09 5/4/ % - ProLogis / PLD Industrial ,090 3/31/09 4/29/ % 6.5% [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 18 of 87

19 Latest Quarterly EPS Surprise (sorted by magnitude of surprise) (continued) Recent Market Date of Latest EPS Surprise Price Value Latest Date EPS EPS % Dividend Company / Ticker Property Type ($) ($mn) Quarter (Actual) (Estimated) Diff. Yield Realty Income / O Triple Net ,345 3/31/09 4/29/ % 7.6% AvalonBay / AVB Apartments ,890 3/31/09 4/29/ % 5.8% Assisted Living / ALC Healthcare /31/09 4/30/ % - Colonial Properties / CLP Apartments /31/09 4/23/ % 7.7% Liberty Property / LRY Offices ,575 3/31/09 4/27/ % 7.8% BRE Properties / BRE Apartments ,265 3/31/09 5/6/ % 9.1% HCP / HCP Healthcare ,946 3/31/09 4/28/ % 7.9% Kimco Realty / KIM Shopping ,272 3/31/09 4/30/ % 2.1% Boston Properties / BXP Offices ,177 3/31/09 4/29/ % 5.3% Federal Realty / FRT Shopping ,309 3/31/09 5/6/ % 4.6% American Campus / ACC Apartments /31/09 4/28/ % 6.1% Consolidated-Tomoka / CTO Land /31/09 4/16/ % 1.2% Alexander's / ALX Shopping ,380 3/31/09 na na na nm - Bridgford Foods / BRID Miscellaneous /17/09 na na na nm - Brookfield Prop. / BPO Offices ,391 3/31/09 na na na nm 6.5% Cresud / CRESY Land /30/08 11/11/08 (0.23) na nm 1.2% DuPont Fabros / DFT Offices /31/09 na na na nm - Dynacq Healthcare / DYII Healthcare /28/09 na na na nm - Equity Lifestyle / ELS Mfd Homes ,032 3/31/09 4/20/ na nm 2.4% General Growth / GGWPQ Malls /31/09 na na na nm - Grubb & Ellis / GBE Miscellaneous /31/09 na na na nm 44.6% IRSA Inversiones / IRS Offices /31/09 na na na nm - Kilroy Realty / KRC Offices /31/09 na na na nm 6.7% Maguire Properties / MPG Offices /31/09 na na na nm - MI Developments / MIM Triple Net /31/09 na na na nm 7.2% Natuzzi / NTZ Retailer /31/09 na na na nm - Panasonic / PC Miscellaneous ,234 3/31/09 5/15/09 (2.28) na nm 3.4% Silverleaf Resorts / SVLF Miscellaneous /31/09 na na na nm - Tejon Ranch / TRC Land /31/09 5/5/09 (0.08) na nm - Thomas Properties / TPGI Offices /31/09 na na na nm 3.0% Vornado Realty / VNO Offices ,446 3/31/09 na na na nm 3.1% Winthrop Realty / FUR Triple Net /31/09 na na na nm 10.2% Duke Realty / DRE Offices ,149 3/31/09 4/29/09 (0.07) (0.06) nm 7.1% Brandywine Realty / BDN Offices /31/09 4/29/09 (0.03) (0.01) nm 5.7% Forest City / FCE.A Malls /31/09 3/30/09 (0.44) (0.42) nm - Toll Brothers / TOL Homebuilder ,781 4/30/09 6/3/09 (0.52) (0.50) nm - D.R. Horton / DHI Homebuilder ,033 3/31/09 5/4/09 (0.34) (0.30) nm 1.6% M.D.C. Holdings / MDC Homebuilder ,338 3/31/09 5/8/09 (0.88) (0.83) nm 3.5% Pennsylvania REIT / PEI Malls /31/09 4/30/09 (0.28) (0.22) nm 10.4% AMB Property / AMB Industrial ,866 3/31/09 4/28/09 (1.24) (1.16) nm 5.7% St. Joe / JOE Land ,430 3/31/09 5/5/09 (0.13) (0.02) nm - Steinway Musical / LVB Miscellaneous /31/09 5/5/09 (0.20) (0.03) nm - Playboy Enterprises / PLA Miscellaneous /31/09 5/11/09 (0.41) (0.18) nm - Lennar / LEN Homebuilder ,280 2/28/09 3/30/09 (0.98) (0.64) nm 2.0% Maui Land Pineapple / MLP Land /31/09 5/2/09 (1.65) (1.15) nm - Ryland Group / RYL Homebuilder /31/09 4/29/09 (1.76) (1.02) nm 0.7% Centex / CTX Homebuilder ,056 3/31/09 5/5/09 (3.26) (1.27) nm - Cogdell Spencer / CSA Healthcare /31/09 5/11/09 (3.90) (0.06) nm 21.5% CB Richard Ellis / CBG Miscellaneous ,599 3/31/09 4/29/09 (0.03) 0.02 <-99% - Syms / SYMS Retailer /28/09 4/23/09 (0.13) 0.05 <-99% - [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 19 of 87

20 Revenue and EPS Growth (sorted by LTM revenue growth) Revenue Growth EPS Growth 5-Year Last FY LTM Last FY This FY Next FY LTGR Company / Ticker Property Type CAGR (Actual) (Estimated) (Estimated) (Estimated) Cresud / CRESY Land 18% 47% >99% -63% nm nm na Grubb & Ellis / GBE Miscellaneous 7% >99% >99% nm nm nm na Cogdell Spencer / CSA Healthcare 52% >99% >99% nm nm nm na Regency Centers / REG Shopping 7% 13% 93% -41% 4% 5% 2% SL Green Realty / SLG Offices 38% 11% 92% -83% >99% -33% 3% DuPont Fabros / DFT Offices nm >99% 86% nm nm nm na American Campus / ACC Apartments 33% 60% 77% nm nm nm na Thomas Properties / TPGI Offices 30% 76% 71% nm nm nm na Alexander & Baldwin / ALEX Land 9% 14% 68% -4% -65% 84% 7% Healthcare Realty / HR Healthcare 4% 9% 67% 52% 83% -69% na Aimco / AIV Apartments 2% 6% 65% nm nm nm 2% Skilled Healthcare / SKH Healthcare 18% 16% 65% >99% 5% 7% 13% Douglas Emmett / DEI Offices 14% 13% 64% nm nm nm 3% AvalonBay / AVB Apartments 9% 11% 63% -52% 79% -8% 2% HCP / HCP Healthcare 23% 13% 62% 71% 10% 6% 13% Realty Income / O Triple Net 18% 12% 62% -10% 5% 11% na Kimco Realty / KIM Shopping 10% 12% 61% -48% -32% 13% 2% Equity Residential / EQR Apartments 6% 8% 59% -47% >99% nm 2% Corporate Office / OFC Offices 24% 44% 59% >99% -21% 13% 3% Macerich Company / MAC Malls 16% 11% 59% 32% -64% -77% na Camden Property / CPT Apartments 11% 6% 58% nm nm -30% na Federal Realty / FRT Shopping 9% 8% 58% 18% -22% 29% 3% Weingarten Realty / WRI Shopping 11% 5% 55% -63% 39% -18% 2% DCT Industrial / DCT Industrial >99% 1% 52% nm nm nm 2% Boston Properties / BXP Offices 3% 0% 50% -89% 67% 10% 3% California Coastal / CALC Homebuilder -4% -2% 35% nm nm -44% 15% Digital Realty / DLR Offices 53% 33% 34% >99% 7% 14% 17% U-Store-It / YSI Self-Storage 24% 8% 31% nm nm nm -9% Colonial Properties / CLP Apartments 5% -19% 28% nm nm nm na Cousins Properties / CUZ Offices 9% 30% 27% >99% >99% nm na National Retail / NNN Triple Net 18% 25% 25% 16% -13% -4% na Tejon Ranch / TRC Land 21% 24% 24% -45% 61% 11% 15% BioMed Realty / BMR Offices >99% 13% 24% -19% -51% 9% 6% PriceSmart / PSMT Retailer 15% 26% 22% >99% 10% -23% 15% UDR / UDR Apartments 3% 17% 20% nm nm nm na Health Care REIT / HCN Healthcare 24% 22% 20% 19% 36% -8% 16% Great Wolf Resorts / WOLF Miscellaneous 40% 31% 20% nm nm nm na Nationwide Health / NHP Healthcare 19% 21% 19% -22% 50% -16% 15% Alexandria R. E. / ARE Offices 23% 16% 18% 15% -6% -13% na Vail Resorts / MTN Land 10% 23% 17% 69% -51% -66% -17% Equity Lifestyle / ELS Mfd Homes 14% 11% 15% -18% -51% >99% na Duke Realty / DRE Offices 9% 14% 13% -65% nm nm na EastGroup Properties / EGP Industrial 9% 12% 11% 12% -19% -24% na ProLogis / PLD Industrial 31% -9% 11% nm nm nm na Extra Space Storage / EXR Self-Storage 50% 14% 10% 15% -15% -58% 6% Cedar Shopping / CDR Shopping 46% 13% 10% -25% -71% nm na Kilroy Realty / KRC Offices 7% 12% 9% 9% nm nm na Tanger Outlet / SKT Shopping 16% 7% 9% -1% 97% -41% 2% Vornado Realty / VNO Offices 13% 12% 8% -59% nm nm na Essex Property / ESS Apartments 10% 9% 8% 62% -21% -20% na [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 20 of 87

21 Revenue and EPS Growth (sorted by LTM revenue growth) (continued) Revenue Growth EPS Growth 5-Year Last FY LTM Last FY This FY Next FY LTGR Company / Ticker Property Type CAGR (Actual) (Estimated) (Estimated) (Estimated) Ventas / VTR Healthcare 37% 24% 8% 16% 23% -8% 8% BRE Properties / BRE Apartments 6% 7% 7% 29% -24% -35% 5% CBL & Associates / CBL Malls 11% 9% 5% -92% >99% >99% 2% Taubman Centers / TCO Malls 12% 7% 5% nm nm -29% 2% Liberty Property / LRY Offices 5% 9% 5% 1% -17% -4% 2% Home Properties / HME Apartments 7% 4% 5% 40% -29% 19% na AMB Property / AMB Industrial 7% 7% 4% nm nm nm na Brookdale Senior / BKD Healthcare 54% 5% 4% nm nm nm 8% IRSA Inversiones / IRS Offices 36% 47% 3% 5% nm nm na Simon Property / SPG Malls 11% 4% 3% -11% -11% 5% 2% Alexander's / ALX Shopping 19% 1% 2% -33% nm nm na Natuzzi / NTZ Retailer -5% -14% 2% nm nm nm na Target / TGT Retailer 9% 2% 1% -15% -1% 11% 13% Bridgford Foods / BRID Miscellaneous -2% -3% 1% nm nm nm na Pennsylvania REIT / PEI Malls 22% 2% 1% nm nm nm 2% Assisted Living / ALC Healthcare nm 2% 0% -9% -3% 31% 12% Post Properties / PPS Apartments 1% 2% -1% nm nm nm na Kite Realty / KRG Shopping 39% 3% -1% -41% -92% nm na Equity One / EQY Shopping 6% -3% -1% -29% >99% -51% 2% Silverleaf Resorts / SVLF Miscellaneous 10% 4% -1% -34% nm nm na General Growth / GGWPQ Malls 22% 3% -1% nm nm nm na Brandywine Realty / BDN Offices 15% -2% -3% -42% nm nm na Forest City / FCE.A Malls 10% 0% -3% nm nm nm na Winthrop Realty / FUR Triple Net 80% -11% -3% nm nm nm na Developers Divers. / DDR Shopping 16% 0% -4% nm nm nm 2% Steak n Shake / SNS Miscellaneous 4% -7% -4% nm nm >99% na Brookfield Prop. / BPO Offices 16% -1% -4% >99% nm nm na Maguire Properties / MPG Offices 23% 4% -5% nm nm nm na Mack-Cali Realty / CLI Offices 7% -4% -5% -25% -15% -13% na Public Storage / PSA Self-Storage 14% -4% -8% >99% -36% -18% 20% Sears Holdings / SHLD Retailer 15% -8% -9% -93% >99% -14% 10% Syms / SYMS Retailer -3% -9% -9% nm nm >99% na MI Developments / MIM Triple Net 0% -2% -10% -74% nm nm na Steinway Musical / LVB Miscellaneous 3% -5% -11% -47% -68% nm na Panasonic / PC Miscellaneous 1% -14% -16% nm nm nm 3% Dynacq Healthcare / DYII Healthcare -8% 41% -16% 33% nm nm na Playboy Enterprises / PLA Miscellaneous -2% -14% -17% nm nm nm na CB Richard Ellis / CBG Miscellaneous 26% -15% -21% nm nm 70% 8% NVR / NVR Homebuilder 0% -28% -32% -69% 1% 42% 13% Ryland Group / RYL Homebuilder -11% -35% -34% nm nm nm 12% Meritage Homes / MTH Homebuilder 1% -35% -36% nm nm nm 9% Maui Land Pineapple / MLP Land -12% -49% -42% nm nm nm na Toll Brothers / TOL Homebuilder 3% -32% -43% nm nm nm 9% D.R. Horton / DHI Homebuilder -5% -41% -46% nm nm nm 9% Consolidated-Tomoka / CTO Land -10% -52% -47% -64% -69% >99% na Lennar / LEN Homebuilder -12% -55% -52% nm nm nm 9% M.D.C. Holdings / MDC Homebuilder -13% -49% -53% nm nm nm 12% Centex / CTX Homebuilder -17% -54% -54% nm nm nm 9% KB Home / KBH Homebuilder -12% -53% -56% nm nm nm 11% St. Joe / JOE Land -17% -30% -58% nm nm nm 15% [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 21 of 87

22 Percentile Rank within Industry (sorted by LTM EBIT margin rank) The following table shows 50 companies of the 100 companies included in this report. The companies were selected on the basis of their respective industry percentile rank, which was determined based on LTM EBIT margin. Market Enterprise Percentile Rank within Industry Value Value Revenue Growth EPS Growth LTM EBIT Company / Ticker Property Type ($mn) ($mn) 5-Year LTM LTM Estimated Margin Alexander's / ALX Shopping 1,380 2, na 98 National Retail / NNN Triple Net 1,376 2, na 97 BioMed Realty / BMR Offices 845 2, Regency Centers / REG Shopping 2,930 5, Kimco Realty / KIM Shopping 4,272 8, Federal Realty / FRT Shopping 3,309 5, Public Storage / PSA Self-Storage 11,468 14, Consolidated-Tomoka / CTO Land na 88 Realty Income / O Triple Net 2,345 4, na 87 Weingarten Realty / WRI Shopping 1,770 4, EastGroup Properties / EGP Industrial 837 1, na 87 Extra Space Storage / EXR Self-Storage 737 1, Cedar Shopping / CDR Shopping 223 1, na 87 Liberty Property / LRY Offices 2,575 5, Mack-Cali Realty / CLI Offices 1,812 4, na 85 Nationwide Health / NHP Healthcare 2,796 4, Vornado Realty / VNO Offices 8,446 20, na 84 DuPont Fabros / DFT Offices 383 1,063 na na 83 Douglas Emmett / DEI Offices 1,156 4, Equity Residential / EQR Apartments 6,548 16, Digital Realty / DLR Offices 2,809 4, Kite Realty / KRG Shopping na 82 Brandywine Realty / BDN Offices 622 3, na 82 IRSA Inversiones / IRS Offices na 81 Ventas / VTR Healthcare 4,734 7, Developers Divers. / DDR Shopping 853 7, DCT Industrial / DCT Industrial 773 1, Boston Properties / BXP Offices 6,177 12, Pennsylvania REIT / PEI Malls 232 2, BRE Properties / BRE Apartments 1,265 3, American Campus / ACC Apartments 942 2, na 77 Kilroy Realty / KRC Offices 687 1, na 77 Tanger Outlet / SKT Shopping 1,047 1, Essex Property / ESS Apartments 1,810 3, na 76 AvalonBay / AVB Apartments 4,890 8, CBL & Associates / CBL Malls 446 6, U-Store-It / YSI Self-Storage 249 1, Vail Resorts / MTN Land 1,054 1, ProLogis / PLD Industrial 4,090 13, na 71 Simon Property / SPG Malls 13,815 30, Brookfield Prop. / BPO Offices 3,391 17, na 69 Aimco / AIV Apartments 1,279 8, na 6 68 Alexandria R. E. / ARE Offices 1,553 4, na 68 SL Green Realty / SLG Offices 1,439 6, Healthcare Realty / HR Healthcare 1,030 1, na 67 Silverleaf Resorts / SVLF Miscellaneous na 67 General Growth / GGWPQ Malls , na 67 Skilled Healthcare / SKH Healthcare Equity Lifestyle / ELS Mfd Homes 1,032 2, na 65 Alexander & Baldwin / ALEX Land 1,024 1, [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 22 of 87

23 Insider Buying and Ownership (sorted by # of buys minus # of sells) Companies not included in the following table have had no insider buying or selling in the past six months. Market Enterprise Recent Last Six Months Price / Value Value Price YTD Insider Insider Insider Tangible Company / Ticker Property Type ($mn) ($mn) ($) Change Ownership Buys Sales Book Brandywine Realty / BDN Offices 622 3, % 2% x Silverleaf Resorts / SVLF Miscellaneous % 28% x Weingarten Realty / WRI Shopping 1,770 4, % 12% 9-1.2x Forest City / FCE.A Malls 979 9, % 36% x Kite Realty / KRG Shopping % 20% 8-0.3x Alexander's / ALX Shopping 1,380 2, % 28% 7-6.1x Developers Divers. / DDR Shopping 853 7, % 2% 7-0.4x Maguire Properties / MPG Offices 51 4, % 28% 7 - nm California Coastal / CALC Homebuilder % 11% 5-0.2x Colonial Properties / CLP Apartments 379 2, % 19% x Healthcare Realty / HR Healthcare 1,030 1, % 2% 4-1.3x Cogdell Spencer / CSA Healthcare % 19% 4 - nm Thomas Properties / TPGI Offices % 13% 3-0.3x Equity One / EQY Shopping 1,193 2, % 62% x Steinway Musical / LVB Miscellaneous % 20% x Pennsylvania REIT / PEI Malls 232 2, % 14% x Consolidated-Tomoka / CTO Land % 0% 2-1.7x Cousins Properties / CUZ Offices 536 1, % 3% 2-1.2x DCT Industrial / DCT Industrial 773 1, % 1% x American Campus / ACC Apartments 942 2, % 1% x Essex Property / ESS Apartments 1,810 3, % 8% x Macerich Company / MAC Malls 1,511 7, % 1% x Taubman Centers / TCO Malls 1,456 4, % 3% 8 6 nm Extra Space Storage / EXR Self-Storage 737 1, % 8% 1-0.8x Cedar Shopping / CDR Shopping 223 1, % 4% 1-0.5x DuPont Fabros / DFT Offices 383 1, % 27% 1-0.6x BRE Properties / BRE Apartments 1,265 3, % 2% 1-1.3x ProLogis / PLD Industrial 4,090 13, % 1% 1-0.7x Target / TGT Retailer 30,377 47, % 0% 1-2.2x Great Wolf Resorts / WOLF Miscellaneous % 3% 1-0.4x Post Properties / PPS Apartments 670 1, % 2% 1-0.7x Winthrop Realty / FUR Triple Net % 18% 1-0.8x Kilroy Realty / KRC Offices 687 1, % 6% x Aimco / AIV Apartments 1,279 8, % 1% x [MFI100 Top100_browser MOI_macros_100.xls, MOI100A] 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 23 of 87

24 Profiled Companies Where s the Real Estate Value Alexander & Baldwin (ALEX) Notable shareholder: Third Avenue (8%) Apartment Investment and Management (Aimco) (AIV) Notable shareholder: Pershing Square (7%) Assisted Living Concepts (ALC) Notable shareholder: Advisory (16%) Consolidated-Tomoka Land (CTO) Notable shareholder: Wintergreen (26%) Cresud (CRESY) Notable shareholder: Leucadia (5%) Dynacq (DYII) Notable shareholder: None General Growth Properties (GGWPQ) Notable shareholder: Pershing Square (25%)* Maui Land and Pineapple (MLP) Notable shareholder: Steve Case (43%) MI Developments (MIM) Notable shareholder: Greenlight (12%) Natuzzi (NTZ) Notable shareholder: Royce (10%) Panasonic (PC) Notable shareholder: Dodge & Cox (3%) Playboy Enterprises (PLA) Notable shareholder: Plainfield (19% of Class A voting stock) PriceSmart (PSMT) Notable shareholder: None Sears Holdings (SHLD) Notable shareholder: ESL (54%) Sonae Capital (Lisbon: SONC) Notable shareholder: Pabrai (7%) St. Joe (JOE) Notable shareholder: Fairholme (20%) Steak n Shake (SNS) Notable shareholder: Lion Fund (13%) Steinway Musical Instruments (LVB) Notable shareholder: ValueAct (13%) Syms (SYMS) Notable shareholder: Franklin (10%) Target (TGT) Notable shareholder: Pershing Square (10%) Tejon Ranch (TRC) Notable shareholder: Third Avenue (29%) Vail Resorts (MTN) Notable shareholder: Baron (16%) Winthrop Realty (FUR) Notable shareholder: Fairholme (11%) Ocean transport carrier that owns a fleet of vessels, 89K acres of land in Hawaii, and a portfolio of 21 commercial real estate properties in Hawaii (1.1 million leasable sq. ft) and 22 properties on U.S. mainland (6.6 million leasable sq. ft). REIT that owns ~125,000 apartments in the U.S. Hidden value resides in non-recourse nature of 84% of debt, with average maturity of nearly 10 years. Majority of debt is fixed-rate inflation benefits asset and liability sides of balance sheet. Wisconsin-based operator of assisted living residences that owns the real estate associated with 153 of 216 operated facilities. Most of the properties are encumbered by debt. Florida real estate developer that owns more than 10,000 acres (including commercial/retail sites) within the city limits of Daytona Beach. The real estate is carried at a fraction of its likely value, with little debt on balance sheet. Argentinian agricultural company and one of largest land owners in Argentina, with 1.1 million acres. Past sales of land have occurred at multiples of book value. The company also owns majority stakes in IRSA (IRS) and Alto Palermo (APSA). Operator of acute care hospitals owns a hospital in Pasadena, Texas and another in Garland, Texas (near Dallas). Hospital real estate value potentially exceeds recent market value. REIT, currently in bankruptcy. Owns and/or operates 200+ regional malls (>160 million sq. ft), 30+ grocery-anchored shopping centers, and office properties. The REIT also owns 18,000 saleable acres of land. Equity could have material value, depending on cap rate assumptions. Hawaii landholding company, with 24,500 acres of owned Maui land, acquired in and carried at cost. 1,800 acres is in entitlement process. The company currently operates the Kapalua Resort, which includes a Ritz-Carlton property. Real estate firm, with well-capitalized auto parts maker Magna (MGA) as principal tenant. Properties are carried at $1+ billion, net of all debt, roughly three times MIM s market value. Italian maker of residential upholstered furniture, with net cash and ownership of real estate properties in Italy and elsewhere. The company owns 68 retail stores and 4 million sq. ft of office, warehouse and production space. Japanese electronics giant owns substantial real estate holdings, including 106 million sq. ft of manufacturing facility floor space worldwide and 45 million sq. ft of space in sales offices, R&D facilities, employee housing, and administrative offices. Media and lifestyle company that owns the Playboy Mansion, bought for $1 million in 1971 but worth perhaps $50+ million. Another hidden asset is 3% convertible debt due 2025 (with conversion price of more than 5x recent market price). Operator of membership shopping warehouse clubs in Central America and Caribbean owns land and building associated with 18 clubs, comprising owned 1.15 million sq. ft of floor space. Broadline retailer operating in U.S. and Canada, with ownership of ~800 stores, comprising ~100 million of owned sq. ft. Portuguese real estate development and venture firm, with ownership of multiple attractive real estate properties in Portugal, including the Troia beach resort, which Cashman & Wakefield recently appraised at nearly 500 million. Florida developer of residential, commercial and industrial real estate, with ownership of 700,000 acres in Northwest Florida, with 44% of acreage within ten miles of Gulf of Mexico. Indianapolis-based restaurant chain that owns 164 real estate properties. Value should become apparent as new CEO Biglari sells off certain properties and refranchises restaurants. Top maker of musical instruments owns 17-story building in Midtown Manhattan, on the books for $23 million but worth up to $100 million; a plant on 12 acres on the waterfront in Queens, NY, on the books for $3 million but worth up to $200 million. Discount apparel retailer owns 21 of 32 stores, with owned retail space of 1.2 million sq. ft and another 0.7 million of owned other space, implying recent EV of $47 per owned square foot. Discount retailer owns the land and buildings associated with the vast majority of its ~1,700 stores and distribution centers. Bill Ackman has proposed spinning off the properties into a REIT, but management has rejected the idea. Owns 270,000 contiguous acres in California, between L.A. and Bakersfield, with roughly 10% constituting developable land. Tejon is focused on three master planned communities. Ski resort and lodging operator owns five world-class ski resorts comprising 17,000 acres, including Heavenly at Lake Tahoe, CA. The company owns 10 hotels and five golf courses. REIT owns office, retail and other properties, primarily in Texas, Florida, Illinois, Indiana, Pennsylvania, and New York. Winthrop has strengthened the balance sheet in recent quarters despite difficult market conditions. * Represents economic stake, including cash-settled total return swaps. Pershing Square acquired its stake in General Growth Properties at an average price of $0.83 per share in November 2008 (source: Pershing Square Q letter to investors) by BeyondProxy LLC. All rights reserved. June 2009 Page 24 of 87

25 Top 5 Investment Opportunities We highlight the following companies: Apartment Investment & Management (Aimco) (AIV) MI Developments (MIM) Playboy Enterprises (PLA) Steinway Musical Instruments (LVB) Syms (SYMS) 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 25 of 87

26 Apartment Investment & Management (Aimco) (AIV) Denver, CO, Services: Real Estate Operations, Member of S&P Trading Data Consensus EPS Estimates Valuation Price: $10.92 (as of 6/12/09) Month # of P/E FYE 12/31/08 n/m 52-week range: $ $43.67 Latest Ago Ests P/E FYE 12/31/09 n/m Market value: $1.3 billion This quarter -$0.20 -$ P/E FYE 12/31/10 n/m Enterprise value: $8.6 billion Next quarter P/E FYE 12/31/11 n/m Shares out: million FYE 12/31/ EV / LTM revenue 3.9x Ownership Data FYE 12/31/ EV / LTM EBITDA 9.4x Insider ownership: 1% FYE 12/31/ EV / LTM EBIT 39.5x Insider buys (last six months): 2 LT EPS growth 2.0% 3.0% 1 P / tangible book 1.9x Insider sales (last six months): 1 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 94% Date Actual Estimate LTM EBIT yield 3% # of institutional owners: 678 5/1/09 -$0.33 -$0.46 LTM pre-tax ROC 3% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue 1,267 1,308 1,279 1,346 1,274 1,377 1,458 2, Gross profit , EBIT Net income (17) 96 (36) (39) (38) Diluted EPS 0.63 (0.34) (0.33) (1.19) (0.93) (0.85) (1.51) (2.34) (0.37) (0.36) Cash from ops (18) Capex Free cash flow (341) 92 (216) (340) (147) (426) (356) (350) (92) (86) Cash & investments Total current assets Intangible assets Total assets 10,317 10,087 10,072 10,019 10,290 10,607 9,403 9,082 10,552 9,082 Short-term debt Total current liabilities Long-term debt 5,731 5,651 5,550 5,805 6,494 6,403 6,777 6,720 7,562 6,720 Total liabilities 7,153 7,227 7,064 7,303 7,950 8,857 7,985 7,698 9,001 7,698 Preferred stock ,042 1, Common equity 2,218 2,006 1,967 1,706 1,516 1, EBIT/capital employed 5% 5% 3% 3% 3% 3% 1% 3% n/m n/m $70 Ten-Year Stock Price Performance and Trading Volume Dynamics $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 26 of 87

27 BUSINESS OVERVIEW Apartment Investment and Management (Aimco) is a multifamily REIT focused on the 20 largest U.S. markets. Aimco consolidates most owned properties. Some properties are accounted for under the equity or cost methods. The latter represent Aimco s interest in unconsolidated partnerships. INVESTMENT HIGHLIGHTS Large U.S. apartment owner and operator. Aimco has expanded its real estate portfolio since going public in 1994, from 132 owned or managed properties with 29,343 apartment units to a peak of over 2,100 properties with 379,000 units. Aimco owned or managed 976 properties with 160,118 units at the end of 1Q09. The portfolio includes garden style, mid-rise and high-rise properties. 85% of capital invested in 20 target markets, including Miami and other primary Florida markets (13%), D.C./NoVa/Maryland (12%), L.A. (11%), Chicago (7%), Boston (6%), and Manhattan (5%). 84% of debt is non-recourse property debt with a weighted average maturity of 9.6 years and average interest rate of 5.5%. Aimco s average debt maturity is more than twice the REIT average, minimizing refunding risk and maximizing inflation benefits goals: Improve balance sheet; sell properties to prepay $350 million term debt balance due March 2011; accelerate refinancing of non-recourse property debt maturing in ; use excess proceeds to buy back common and preferred shares. Guiding for FFO of $ per share in 2009, with expected FFO of $ in Q2. REIT distributions not taxed at corporate level. Repurchased $900+ million of stock since Shares trade at 1.9x tangible book value. SELECTED OPERATING DATA FYE December Q09 Owned/managed properties 1,256 1, Change (y-y) -8% -7% -15% -16% % of apartment properties by classification: Consolidated 56% 56% 52% n/a Unconsolidated 8% 8% 9% n/a Asset mgmt services 33% 33% 36% n/a Property mgmt services 3% 3% 3% n/a Owned/managed apartments 216K 203K 163K 160K Change (y-y) -10% -6% -20% -21% % of apartment units by classification: Consolidated 75% 76% 72% n/a Unconsolidated 5% 5% 6% n/a Asset mgmt services 18% 17% 20% n/a Property mgmt services 2% 2% 2% n/a Owned apts (excl. managed) 167K 158K 127K n/a Change (y-y) -10% -6% -19% n/a % of owned apartments by tenant class: Conventional 1 19% 19% 27% n/a Affordable 1 81% 81% 73% n/a Total assets ($mn) 10,290 10,607 9,415 9,082 Selected balance sheet items as % of total assets: Land 23% 22% 25% 26% Buildings, improvements 88% 74% 90% 94% Accumulated depreciation -26% -22% -29% -32% Other assets 15% 26% 14% 12% Property loans payable 50% 48% 59% 61% Other debt 15% 12% 13% 13% Other liabilities 9% 18% 8% 6% Op. partnership preferreds 2% 1% 1% 1% Minority interests 2% 4% 4% 4% Perpetual preferred stock 7% 7% 7% 8% Common stock 16% 10% 8% 8% Physical occupancy (SS) 2 95% 95% 95% 94% Rent per unit (SS) 2 ($) Replacements per unit 3 ($) FFO to common 4 ($mn) Source: Company filings, Manual of Ideas analysis. 1 Conventional represents market-rate apartments. Affordable apartment rents are paid in whole or in part by a government agency. Affordable properties tend to have relatively more stable rents and higher occupancy. 2 Same store metrics show the results of a consistent portfolio of properties. 3 Capital replacements per effective unit. 4 Diluted FFO to common holders. INVESTMENT RISKS & CONCERNS Guiding for same store net operating income to be flat to down 5% in 2009 (down 2-3% in Q2). GAAP net loss is expected to be $ per share in Aimco is cutting redevelopment expenditures by 75% this year. Leveraged REIT, with common equity accounting for less than 10% of assets. Virtually all of Aimco s properties are encumbered by mortgage debt. While 84% of debt is non-recourse to Aimco, equity value would decline if properties were foreclosed upon. Requirement to distribute 90% of REIT taxable income limits Aimco s cash cushion, making shortterm funding a necessity in ongoing operations. MAJOR HOLDERS * Founder and CEO Considine 7% Other insiders 2% Security Capital 11% Vanguard 9% Pershing Square 7% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? * Aimco owns 93% of its operating entity, AIMCO Properties. Aimco had 116 million common shares out and AIMCO Properties had 9 million non- Aimco-owned units for a total of 126 million shares and units at March 31. THE BOTTOM LINE Aimco owns and/or manages 160,000 apartments in the U.S. While virtually all properties are financed with mortgage debt, 84% of the debt is non-recourse, with a weighted average maturity of nearly ten years. The non-recourse nature of the debt gives shareholders a put option on properties whose debt exceeds property value, while preserving upside on a property-byproperty basis. Aimco intends to prepay some of its $350 million term debt due 2011 by selling properties this year. A large portion of Aimco s debt is fixed-rate, making this REIT an interesting investment for those seeking to hedge inflation risk by BeyondProxy LLC. All rights reserved. June 2009 Page 27 of 87

28 additional insight into AIV: SLIDES FROM COMPANY PRESENTATION, MAY 20, by BeyondProxy LLC. All rights reserved. June 2009 Page 28 of 87

29 MI Developments (MIM) Aurora, ON, Canada, Services: Real Estate Operations Trading Data Consensus EPS Estimates Valuation Price: $8.31 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $25.86 Latest Ago Ests P/E FYE 1/0/00 n/a Market value: $388 million This quarter n/a n/a n/a P/E FYE 12/30/00 n/a Enterprise value: $495 million Next quarter n/a n/a n/a P/E FYE 12/30/01 n/a Shares out: 46.7 million FYE 1/0/00 n/a n/a n/a EV / LTM revenue 0.7x Ownership Data FYE 12/30/00 n/a n/a n/a EV / LTM EBITDA n/m Insider ownership: 2% FYE 12/30/01 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 0.3x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 93% Date Actual Estimate LTM EBIT yield -17% # of institutional owners: 88 n/a n/a n/a LTM pre-tax ROC -5% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT 10 (123) (52) (17) 0 11 (127) (84) Net income 5 (32) (8) (12) (39) 7 (29) Diluted EPS 0.11 (0.67) (0.22) (0.76) 0.85 (0.64) Cash from ops Capex Free cash flow (239) (140) (157) (142) (64) (31) Cash & investments Total current assets Intangible assets Total assets 2,318 2,632 3,035 2,865 2,820 2,908 2,581 1,823 2,936 1,823 Short-term debt Total current liabilities Long-term debt Total liabilities 886 1,000 1,350 1,273 1,143 1, , Preferred stock Common equity 1,432 1,632 1,685 1,592 1,677 1,736 1,616 1,536 1,770 1,536 EBIT/capital employed 1% -7% -3% -1% 0% 0% -6% -5% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 29 of 87

30 BUSINESS OVERVIEW MI Developments (MIM) owns industrial real estate leased primarily to Magna International (MGA). MIM also acquires land for mixed-use and residential development. The company holds a majority stake in MEC, an owner of horse racetracks. MEC filed for Chapter 11 in March. MGA spun off MIM in an IPO in September OWNED REAL ESTATE ASSETS * ($ millions) Income Properties Development Properties N.A.: Canada $365 $57 N.A.: U.S N.A.: Mexico 73 6 Europe: Austria Europe: Germany Europe: Other 31 6 Book value $1,187 1 $214 2 Source: Company filings. * As of yearend Comprised of land of $207 million and net improvements of $980 million. 2 Comprised virtually entirely of land. INVESTMENT HIGHLIGHTS Owns 105 industrial and commercial income properties in Canada, the U.S., Mexico, Austria, Germany, the Czech Republic, the U.K., Spain and Poland, with 27 million sq. ft of leasable area carried at $1.2 billion (85% of MIM real estate). 1,400 acres of properties held for development, on books for $213 million (15% of real estate). 60+% of income properties are leased under agreements that expire in 2017 or thereafter. Only 7% of property leases expire prior to Strong balance sheet, with tangible book value of $1.5 billion and net debt of roughly $100 million. Shares trade at 0.3x tangible book and 7% dividend yield, based on dividend of $.60 per year. INVESTMENT RISKS & CONCERNS Controlled by chairman Frank Stronach, who controls MGA and has involved MIM in MEC s money-losing business. David Einhorn has fought MIM since 04. MIM claims rather shamelessly that Einhorn s activism has hurt business. Stronach may find ways to keep sinking cash into horseracing despite MEC bankruptcy. MIM will likely bid on some MEC assets at the auction in September. MIM has tried to placate shareholders by saying that acquired assets would be segregated. No further horseracing investments would be made without the approval of non-stronach shareholders. $386 million loan receivable from MEC may be impaired. That said, MEC s real estate is likely worth more than the bankrupt entity s total debt. SELECTED OPERATING DATA REAL ESTATE BUSINESS FYE December Q09 # of income properties Leasable sq. ft (mn) Revenue ($mn) Change (y-y) 17% 22% 3% 16% 0% % of revenue by geography: 1 Europe 46% 51% 49% 55% n/a Canada 28% 27% 29% 26% n/a U.S. 19% 16% 16% 14% n/a Mexico 7% 6% 6% 5% n/a FFO ($mn) Diluted FFO / share ($) Source: Company filings, Manual of Ideas analysis. 1 Three-fourths of rental revenue is denominated in euros or Canadian dollars. SELECTED OPERATING DATA CONSOLIDATED COMPANY 1 FYE December Q09 Revenue by segment ($mn): Real estate business MEC (now bankrupt) Net income by segment ($mn): Real estate business MEC (now bankrupt) 1 (63) (38) (19) (138) (55) Selected consolidated balance sheet data ($mn): Cash and equivalents Restricted cash Bank indebtedness Other debt Senior debentures Note obligations, net diluted shares out 0% 0% -1% -3% 0% Source: Company filings, Manual of Ideas analysis. 1 MEC is deconsolidated as of March 5, 2009, the bankruptcy filing date. Magna International accounts for 98% of real estate revenue. While MGA is rationalizing plants, only 3% of MIM s portfolio is yet to be impacted. MGA has one of the strongest balance sheets in the auto industry, with $1.5+ billion of net cash. MAJOR HOLDERS Shares outstanding: 46.2 million Class A shares (NYSE: MIM, Toronto: MIM.A) (one vote per share) and 0.5 million Class B shares (Toronto: MIM.B) (500 votes per share). Frank Stronach controls 66% of Class B shares, representing 1% of total shares and 57% of aggregate voting power. Economic stake: Chairman Stronach 1% Other insiders 0% Mackenzie 20% Greenlight 12% Hotchkis 11% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE MIM is undeniably worth at least twice as much as recent market value and up to 4x if book value is used as a proxy for fair value. The company may finally escape the losses of the horseracing business due to the March bankruptcy filing of the MEC subsidiary. Nonetheless, Frank Stronach s voting control likely means that shareholders will have to wait for a valuecatalyzing event. However, investors may find the 7% dividend yield satisfactory while waiting for full value to be realized by BeyondProxy LLC. All rights reserved. June 2009 Page 30 of 87

31 additional insight into MIM: SLIDES FROM COMPANY PRESENTATION, MAY 8, by BeyondProxy LLC. All rights reserved. June 2009 Page 31 of 87

32 Playboy Enterprises (PLA) Chicago, IL, Services: Motion Pictures Trading Data Consensus EPS Estimates Valuation Price: $2.83 (as of 6/12/09) Month # of P/E FYE 12/31/08 n/m 52-week range: $ $5.84 Latest Ago Ests P/E FYE 12/31/09 n/m Market value: $95 million This quarter -$0.16 -$ P/E FYE 12/31/ x Enterprise value: $169 million Next quarter P/E FYE 12/31/11 n/a Shares out: 33.4 million FYE 12/31/ EV / LTM revenue 0.6x Ownership Data FYE 12/31/ EV / LTM EBITDA n/a Insider ownership: 35% FYE 12/31/11 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book n/m Insider sales (last six months): 1 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 39% Date Actual Estimate LTM EBIT yield n/m # of institutional owners: 144 5/11/09 -$0.41 -$0.18 LTM pre-tax ROC n/m Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT (160) (169) (1) (10) Net income (17) (9) 10 (1) 2 5 (156) (167) (4) (14) Diluted EPS (0.67) (0.31) 0.30 (0.02) (4.69) (5.00) (0.13) (0.41) Cash from ops (2) (3) Capex Free cash flow (14) (14) (4) (4) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m $35 Ten-Year Stock Price Performance and Trading Volume Dynamics $30 $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 32 of 87

33 BUSINESS OVERVIEW Playboy was organized in 1953 to publish Playboy magazine and is now a media and lifestyle company marketing the Playboy brand through multimedia properties and licensing. Segments comprise Entertainment, Publishing and Licensing. INVESTMENT HIGHLIGHTS Playboy brand is one of world s most widely recognized and unique brands. The brand drives the company s licensing and other businesses. Global opportunity to license Playboy name and Rabbit Head logo on wide range of consumer products, retail stores and entertainment venues such as the Palms in Las Vegas. Licensing has been solidly profitable, contributing EBIT of $24 million in 2008 and $6 million in 1Q09. Playboy s Macao licensing venture is set to open for business in Hidden real estate value: Playboy Mansion carried at $1 million, worth ~$50+ million. * The 22,000 square-foot Gothic-Tudor-style structure was built in 1927 and acquired by Playboy in The Mansion sits on five acres, close to the northwestern corner of the L.A. Country Club, near UCLA and the Bel-Air Country Club. $15 million has been invested in renovation and expansion. Playboy magazine ads contribute less than 10% of total revenue, mitigating the impact of declining print readership. Playboy remains the top men s magazine in the world based on circulation. Cheap convertible debt. Playboy s entire debt consists of $115 million in 3% convertible notes due A $30 million revolver remains undrawn. Scott Flanders (52) became CEO on June 1, filling spot vacated by Christie Hefner. Flanders was previously CEO of Freedom Communications. Shares trade at 0.6x EV to trailing revenue. INVESTMENT RISKS & CONCERNS Voting control by Hugh Hefner (83), who owns 70% of the Class A (voting) stock. Hefner s role in founding an American icon notwithstanding, he has stood in the way of empowering capable management, instead supporting his daughter as CEO for years. Hefner has also apparently stood in the way of a potential acquisition of Playboy. Money-losing, declining publishing business has been draining resources and distracting the company from a much-needed strategic move toward brand licensing. Hefner appears to be emotionally attached to the idea of publishing Playboy magazine. * The Mansion is profiled at en.wikipedia.org/wiki/playboy_mansion SELECTED OPERATING DATA FYE December Q09 Revenue (mn) $338 $331 $340 $292 $62 revenue 3% -2% 3% -14% -22% headcount 10% 11% 2% -15% -15% % of revenue by segment: Entertainment U.S. TV 29% 25% 22% 21% 22% Entertainment int'l TV 14% 15% 16% 17% 18% Entertainment online 1 16% 19% 19% 17% 0% 1 Entertainment other 1% 2% 2% 2% 3% Publishing U.S. 26% 24% 23% 23% 22% Publishing int'l 2% 2% 2% 3% 3% Publishing other 1 3% 3% 3% 3% 18% 1 Licensing products 7% 9% 10% 11% 13% Licensing other 1% 1% 3% 2% 2% Revenue growth by segment: Entertainment 8% -1% 1% -18% -20% Publishing -11% -9% -3% -10% -26% Licensing 37% 19% 30% -6% -11% Pre-tax margin by segment: Entertainment 20% 12% 10% 7% 11% Publishing -6% -6% -8% -9% -14% Licensing 58% 57% 61% 59% 60% Corporate -6% -8% -8% -8% -10% Special charges 0% -1% -1% -56% -14% Total pre-tax margin 1% 1% 2% -57% -20% Selected items as % of revenue: Gross profit 26% 20% 21% 19% 18% SG&A 17% 17% 18% 18% 20% EBIT 9% 3% 4% 2% -7% D&A 13% 13% 12% 14% 16% Capex 2 12% 14% 13% 15% 13% shares out (avg) 9% 0% 0% 0% 0% Source: Company filings, Manual of Ideas analysis. 1 In 1Q09, the company moved the online subsegment of the Entertainment segment into the Publishing segment, renaming the latter Print/Digital. 2 Capex includes additions to PP&E, programming assets and trademarks. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E PRVT x 1.1x n/a n/a NOOF x 1.5x 12x n/a PLA x n/m n/m 16x MAJOR HOLDERS Playboy had 4.9 million Class A shares (PLA-A) and 28.6 million Class B shares (PLA) outstanding as of April 30. CEO 34% Other insiders 7% Wells Fargo 10% FMR 7% BlackRock 6% Barclays 3% Plainfield 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Playboy has been a perennial underperformer, failing to live up to the potential of the brand. Poor performance has finally forced tough decisions, including the closing of the New York office, personnel layoffs, and the hiring of a new CEO to replace the Christie Hefner. While Hugh Hefner maintains voting control, Playboy may finally be moving toward a valuecreating catalyst, which is likely to be either dramatically improved financial performance or a sale of the company by BeyondProxy LLC. All rights reserved. June 2009 Page 33 of 87

34 Steinway Musical Instruments (LVB) Waltham, MA, Consumer Cyclical: Recreational Products Trading Data Consensus EPS Estimates Valuation Price: $11.01 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $30.00 Latest Ago Ests P/E FYE 12/31/ x Market value: $94 million This quarter $0.05 $ P/E FYE 12/31/10 n/a Enterprise value: $244 million Next quarter P/E FYE 12/31/11 n/a Shares out: 8.5 million FYE 12/31/ EV / LTM revenue 0.7x Ownership Data FYE 12/31/10 n/a n/a n/a EV / LTM EBITDA 11.6x Insider ownership: 20% FYE 12/31/11 n/a n/a n/a EV / LTM EBIT 12.3x Insider buys (last six months): 6 LT EPS growth n/a n/a n/a P / tangible book 0.8x Insider sales (last six months): 3 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 69% Date Actual Estimate LTM EBIT yield 8% # of institutional owners: 195 5/5/09 -$0.20 -$0.03 LTM pre-tax ROC 7% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT Net income (1) Diluted EPS (0.08) Cash from ops (2) (9) Capex Free cash flow (5) (3) (10) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 10% 8% 11% 11% 3% 12% 8% 7% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 34 of 87

35 BUSINESS OVERVIEW Steinway Musical Instruments operates in two segments: The piano division handcrafts Steinway high-end grand pianos in New York and Germany. It also offers upright pianos and mid-priced Boston- and Essex-branded lines. The customer base consists of artists, amateur pianists, and institutions such as concert halls, universities, and schools. The band division produces brass, woodwind, percussion and string instruments branded Bach, Selmer, C.G. Conn, Leblanc, King, and Ludwig. The customer base includes students as well as adult amateur and professional musicians. COMPANY-OWNED REAL ESTATE 1 Location Sq. Footage Facility Type Long Island City, NY 450,000 Manufacturing New York, NY 217,000 Showroom Hamburg, Germany 221,000 Manufacturing Springfield, OH 110,000 Manufacturing Wilkow, Poland 10,000 Manufacturing Eastlake, OH 160,000 Manufacturing Elkhart, IN 344,000 Various (four facilities) Elkhorn/Kenosha, WI 2 153,000 Manufacturing LaGrange, IL 35,000 Manufacturing Source: Company filings, Manual of Ideas analysis. 1 Most valuable properties: Queens, NY; Manhattan, NY; Hamburg, Germany. 2 The two properties are held for sale. INVESTMENT HIGHLIGHTS World s leading maker of musical instruments, selling pianos under the venerable Steinway & Sons brand and band instruments under a number of recognized brand names. The company has 8-10% share of the piano market, with 85-90% share of the premium segment ($75,000+ grand pianos). Strategy: Pursue piano opportunities in Asia, maintain U.S./Europe market share, improve band division margins, and reduce working capital needs. Owns 17-story building in Midtown Manhattan, carried at $23 million but worth up to $100 million. * The master lease expired at yearend 2008, with likely operating CF improvement of $1.5 million. Owns plant in Queens, NY, carried at $3 million but worth up to $200 million. * The location includes 450,000 sq. ft of floor space and 12 acres of owned waterfront land, with views of Manhattan. Owns plant in Hamburg, Germany, carried at $1 million but worth substantially more. The location includes 221,000 sq. ft of manufacturing and office space and 12 acres of company-owned land. New band products are gaining traction and should do well for us beginning in Shares trade 0.8x tangible book value. * Based on management estimate provided in February 2006 press release; see SELECTED OPERATING DATA FYE December Q09 Revenue (mn) $387 $385 $406 $387 $70 revenue 3% -1% 6% -5% -25% % of revenue by segment and geography: Piano U.S. 30% 30% 29% 28% 27% Piano Germany 14% 15% 17% 19% 15% Piano Other 9% 10% 12% 12% 11% Band U.S. 46% 42% 40% 39% 45% Band Europe 2% 2% 2% 2% 2% Revenue growth by segment and geography: Piano U.S. -5% 2% -1% -7% -31% Piano Germany 12% 10% 17% 5% -25% Piano Other -2% 9% 33% -4% -38% Band U.S. 7% -8% 0% -7% -16% Band Europe 25% 9% 0% -4% -45% EBIT margin by major segment: Piano 14% 13% 15% 13% 1% Band 5% -4% 2% -3% 2% Total 9% 5% 9% 5% 0% Adjusted EBITDA margin by major segment: 1 Piano 17% 16% 17% 16% 6% Band 8% 0% 4% 5% 3% Total 13% 9% 11% 11% 5% Grand pianos sold 3,145 3,134 2,994 2,589 n/a Change (y-y) 2-2% 0% -4% -14% -40% shares out (avg) 0% 3% 3% 0% -1% Source: Company filings, Manual of Ideas analysis. 1 Adjusted EBITDA excludes non-recurring, infrequent, or unusual items. 2 1Q09 year-over-year decline in adjusted EBITDA represents MOI estimate. INVESTMENT RISKS & CONCERNS Guiding for piano sales drop of 20-25% and band sales decline of 10-15% in Consumer markets are challenging and dealers are facing tight credit. Dealer inventories are decreasing. Q2: continued softness in band sales and dismal piano sales. Piano dealers struggle with low traffic, a general lack of affordable financing and excess inventories. In response, the company has reduced factory headcount, lowered production rates, reduced production days [and] aggressively reduced staff headcount and salaries. CEO Messina, chairman Kirkland own 100% of supervoting Class A shares, giving them control. MAJOR HOLDERS Economic stake: CEO 5% Chairman 3% ValueAct 13% Dimensional 7% Voyageur 7% David Silfen 6% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Steinway has leading market shares in the premium piano and U.S. band instrument markets, world-class brand names, and significant hidden real estate holdings, including a prime Manhattan office building and property on the Queens waterfront. While demand for Steinway instruments collapsed in Q1 and is expected to remain soft, it is quite clear that the shares are a bargain. The company bought back some debt at a discount in Q1, signaling management confidence in the liquidity position by BeyondProxy LLC. All rights reserved. June 2009 Page 35 of 87

36 additional insight into LVB: SLIDES FROM COMPANY PRESENTATION, MAY 19, by BeyondProxy LLC. All rights reserved. June 2009 Page 36 of 87

37 Syms (SYMS) Secaucus, NJ, Services: Retail (Apparel) Trading Data Consensus EPS Estimates Valuation Price: $6.31 (as of 6/12/09) Month # of P/E FYE 2/28/09 n/m 52-week range: $ $17.86 Latest Ago Ests P/E FYE 2/28/ x Market value: $92 million This quarter $0.06 $ P/E FYE 2/28/ x Enterprise value: $90 million Next quarter P/E FYE 2/28/ x Shares out: 14.6 million FYE 2/28/ EV / LTM revenue 0.4x Ownership Data FYE 2/28/ EV / LTM EBITDA 15.0x Insider ownership: 55% FYE 2/28/ EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 0.5x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 33% Date Actual Estimate LTM EBIT yield -4% # of institutional owners: 95 4/23/09 -$0.13 $0.05 LTM pre-tax ROC -3% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 3/1/03 2/28/04 2/26/05 2/25/06 3/3/07 3/1/08 2/28/09 2/28/09 3/1/08 2/28/09 Revenue Gross profit EBIT (14) (5) (4) (4) 2 (2) Net income (9) (5) (3) (3) 0 (2) Diluted EPS (0.58) (0.31) (0.23) (0.23) 0.02 (0.13) Cash from ops Capex Free cash flow (6) (11) (11) (2) (1) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed -7% -3% 1% 3% 9% 2% -3% -3% n/m n/m $25 Ten-Year Stock Price Performance and Trading Volume Dynamics $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 37 of 87

38 BUSINESS OVERVIEW Syms operates retail stores offering discounted merchandise from designer labels for men, women and children. Syms opened its first store in 1959 and has expanded to 32 stores. OWNED REAL ESTATE 1 Owned Square Footage State Stores Retail Warehouse Other 2 Connecticut 1 43,000 Florida 4 210,000 87,000 Georgia 2 117,000 65,000 Illinois 1 68,000 Maryland 1 71,000 Michigan 1 50,000 10,000 New Jersey 3 168, , ,000 New York 5 299, ,000 Pennsylvania 1 55,000 14,000 Texas 2 87,000 26,000 Totals 21 1,168, , ,000 Source: Company filings, Manual of Ideas analysis. 1 Of 32 retail stores operated by Syms, 21 stores comprising 1.9 million square feet are company-owned (80% of total retail square footage), while 11 stores comprising 0.5 million square feet are leased (20% of square footage). 2 Additional space is either leased or marketed for lease to third parties. 3 The warehouse space in Secaucus, New Jersey sits on 19 acres of land. INVESTMENT HIGHLIGHTS Owns real estate associated with 21 of 32 Syms retail stores, with retail space of 1.2 million sq. ft, warehouse/office space of 350K sq. ft (including 19 acres of land), and additional space of 391K sq. ft. The PP&E is carried at $96 million but is likely worth substantially more. One owned store is located in NYC while the others are generally near highways in places with at least one million people. None of the company s owned real estate has mortgage debt associated with it. Syms had $2 million of cash and no debt as of February 28. Retail concept: Sell brand-name apparel for less. Brands carried by Syms include Burberry, Ralph Lauren, Calvin Klein, and Tommy Hilfiger. Won bankruptcy auction for Filene s on June 15, agreeing to pay $62 million with partner Vornado. Cost controls improved gross margin by 30 bps and reduced SG&A by $1 million in FY09. Marcy Syms (57) became CEO in She is the daughter of company founder Sy Syms. She has served as president of the company since 1983 and as chief operating officer from Repurchased $3 million of stock at $13 per share in FY09, $2 million in FY08, $12 million in FY07. Shares trade at 0.5x tangible book value and 0.4x enterprise value to trailing revenue. SELECTED OPERATING DATA FYE February Revenue (mn) $280 $281 $267 $242 revenue -1% 0% -5% -9% same store sales 1% 0% -1% -8% stores 0% -8% -3% -3% headcount -1% -2% 0% -18% % of revenue by category: Men s clothes 54% 54% 53% 53% Women s clothes 28% 28% 29% 29% Shoes 8% 8% 8% 8% Children s wear 7% 7% 7% 7% Luggage and other 3% 3% 3% 3% Selected items as a % of revenue: Gross profit 40% 40% 41% 42% EBIT 2% 5% 1% -2% D&A 3% 3% 3% 3% Capex 1% 3% 3% 3% Tangible equity to assets (avg) 88% 86% 84% 85% shares out (avg) -1% -3% 1% 0% Source: Company filings, Manual of Ideas analysis. INVESTMENT RISKS & CONCERNS Revenue down 9% to $242 million in FY09. Same store sales fell 8% due to lower consumer spending. Controlled by the founding Syms family, which owns 57% of the company. Chairman Sy Syms (82) and CEO Marcy Syms each receive a base salary of more than $600,000. In 2006, the company bought three properties from Sy Syms for $18 million. Competes against discount stores, specialty apparel stores, department stores and factory outlet stores, with few sources of competitive advantage. Low returns on capital. Syms has historically earned low single-digit returns on the real estate and working capital tied up in the stores. Equity value would likely be enhanced via real estate sales, but the company has not sold any stores since MAJOR HOLDERS Syms Family 57 % Other insiders <1% Franklin 10% Dimensional 8% Barington 3% Kahn Brothers 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Syms is a discount retailer of brand-name apparel. The company owns the real estate associated with 21 of its 32 retail stores, with owned space of 1.9 million square feet. The properties are generally situated in suburban locations, with real estate value likely exceeding the market value of the entire company. As Syms has no debt, investors can apparently buy the retail business for less than zero. We note that the company is controlled by the founding Syms family, which does not appear particularly focused on unlocking shareholder value. Nonetheless, the shares are unjustifiably cheap. (Syms s recent winning bid for Filene s Basement assets appears to be a positive development, but no pro forma financials are available at this time.) 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 38 of 87

39 Next 5 Investment Opportunities We profile the following companies: Consolidated-Tomoka Land (CTO) Cresud (CRESY) General Growth Properties (GGWPQ) Maui Land & Pineapple (MLP) Steak n Shake (SNS) 2009 by BeyondProxy LLC. All rights reserved. June 2009 Page 39 of 87

40 Consolidated-Tomoka Land (CTO) Daytona Beach, FL, Capital Goods: Construction Services Trading Data Consensus EPS Estimates Valuation Price: $32.71 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $50.57 Latest Ago Ests P/E FYE 12/31/ x Market value: $187 million This quarter $0.06 $ P/E FYE 12/31/ x Enterprise value: $198 million Next quarter P/E FYE 12/31/ x Shares out: 5.7 million FYE 12/31/ EV / LTM revenue 9.6x Ownership Data FYE 12/31/ EV / LTM EBITDA n/a Insider ownership: 0% FYE 12/31/ EV / LTM EBIT 24.7x Insider buys (last six months): 2 LT EPS growth n/a n/a n/a P / tangible book 1.7x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 63% Date Actual Estimate LTM EBIT yield 4% # of institutional owners: 150 4/16/09 $0.06 $0.28 LTM pre-tax ROC 6% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT Net income Diluted EPS Cash from ops (2) (1) Capex Free cash flow (5) (8) 12 (15) (12) (5) (2) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 45% 47% 35% 25% 19% 18% 6% 6% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 2009 Page 40 of 87

41 BUSINESS OVERVIEW Consolidated-Tomoka Land operates in three segments: Real Estate includes land sales and development, agricultural operations, and leasing properties for oil and mineral exploration, primarily in Volusia County, Florida. Income Properties consist of properties leased to parties such as CVS and Walgreens on a triple-net and double-net basis. The properties are located primarily in Florida and Georgia. Golf Operations relate to two golf courses and facilities in Daytona Beach, Florida, including an LPGA golf course. SELECTED OPERATING DATA FYE December Q09 % of revenue by segment: Real estate 1 72% 66% 60% 22% 0% Income properties 15% 19% 20% 45% 61% Golf 11% 12% 12% 23% 37% Corporate and other 3% 3% 8% 10% 2% Revenue growth by segment and other metrics: Real estate -2% -10% -10% -82% -92% Income properties 42% 24% 7% 6% 8% Golf 5% 8% -1% -9% 3% Total revenue 4% -3% -1% -52% -2% Headcount 25% 25% -32% -12% n/a EBIT margin by segment: Real estate 80% 75% 73% 65% n/m Income properties 82% 82% 80% 79% 79% Golf -27% -28% -34% -39% -10% Selected items as a % of total revenue: Gross profit 69% 65% 64% 51% 40% SG&A 18% 16% 14% 14% 27% EBIT 51% 49% 49% 38% 13% D&A 4% 5% 6% 13% 18% Capex 76% 37% 13% 88% 30% Tang. equity to assets 66% 66% 66% 67% n/a shares out. 0% 0% 1% 0% 0% Source: Company filings, Manual of Ideas analysis. 1 No real estate sales occurred during the first quarter. INVESTMENT HIGHLIGHTS Owns 11,200 acres in Florida, with 10,200 acres (including commercial/retail sites) located within the city limits of Daytona Beach. The properties are situated near Interstate-4 and Interstate-95. Business strategy since 2000: sell agricultural land that qualifies for income tax deferral, use proceeds to buy income-producing properties. The company has invested $120 million in 26 income properties through this approach and expects annual lease revenue from these properties to be $9 million. William McMunn (62) became CEO in He joined the company in 1990 as president of the Indigo Development subsidiary. He has thirty years of experience in central Florida real estate. New chairman elected on June 10 in apparent nod to 26% shareholder David Winters, who has demanded that the company declassify the board and separate the positions of chairman and CEO. Income properties segment produces predictable revenue, with segment revenue up 6% in 2008 to $9.2 million and up 8% in 1Q09 to $2.3 million. Tenants include CVS (13% of 2008 revenue), Walgreens (11%), Barnes & Noble, Lowe s, Dick s Sporting Goods, Northern Tool, and Best Buy (the latter recently occupied 30,000 sq. ft. in Georgia). Strong balance sheet, with only $11 million of debt versus $150+ million of real estate book value. Approved $8 million share repurchase in 4Q08, but repurchased only $100K of stock by May 1. Shares trade at 1.7x tangible book value and 37x 2010E earnings. INVESTMENT RISKS & CONCERNS Revenue down 52% in 2008 to $21 million, with real estate segment sales down 82%. Golf operations remain unprofitable. Real estate ownership concentrated in Florida, a state in which prices have declined faster than the national average. According to the Case-Shiller Home Price Index, housing prices in the Tampa area have recently declined at a 23% annual rate. Prices are down 39% since the peak reached in June COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E JOE 2,430 2, x 2.5x n/m n/m TRC x 2.8x 78x 70x FOR x.9x n/m 117x STRS x.3x n/a n/a CTO x 1.7x 126x 37x MAJOR HOLDERS CEO McMunn 1% Other insiders 1% Wintergreen 26% Third Avenue 10% Barclays 5% Morgan Stanley 4% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Consolidated-Tomoka is a Florida real estate developer that has remained profitable throughout the meltdown. This has been largely due to the income properties segment, which generated revenue of $9 million and EBIT of $7 million in In addition, the company s 10,700 acres of real estate in Daytona Beach appear to be carried on the books at a fraction of their value. The company has sold land at prices ranging from $17,800 to $114,000 per acre in recent years. Assuming a value of $15,000 per acre, the land would be worth more than $150 million, making this an interesting asset and income opportunity by BeyondProxy LLC. All rights reserved. June 2009 Page 41 of 87

42 Cresud (CRESY) Ciudad Autonoma de Buenos Aire, Argentina, Consumer Non-Cyclical: Crops Trading Data Consensus EPS Estimates Valuation Price: $10.30 (as of 6/12/09) Month # of P/E FYE 6/30/ x 52-week range: $ $15.38 Latest Ago Ests P/E FYE 6/30/09 n/m Market value: $489 million This quarter n/a n/a n/a P/E FYE 6/30/10 n/m Enterprise value: $798 million Next quarter n/a n/a n/a P/E FYE 6/30/ x Shares out: 47.5 million FYE 6/30/ EV / LTM revenue 3.4x Ownership Data FYE 6/30/ EV / LTM EBITDA n/a Insider ownership: 25% FYE 6/30/ EV / LTM EBIT 22.5x Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 1.1x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 38% Date Actual Estimate LTM EBIT yield 4% # of institutional owners: 85 11/11/08 -$0.23 n/a LTM pre-tax ROC 7% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 6/30/02 6/30/03 6/30/04 6/30/05 6/30/06 6/30/07 6/30/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT Net income (42) Diluted EPS (3.49) (0.01) Cash from ops 8 3 (0) (3) (6) (15) (24) (25) (2) 6 Capex (2) 23 Free cash flow 8 3 (4) (10) (21) (23) (32) (97) 0 (17) Cash & investments Total current assets Intangible assets Total assets , ,478 Short-term debt Total current liabilities Long-term debt Total liabilities , ,032 Preferred stock Common equity EBIT/capital employed 41% 88% 52% 96% 26% 47% 32% 7% n/m n/m $30 Ten-Year Stock Price Performance and Trading Volume Dynamics $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 42 of 87

43 BUSINESS OVERVIEW Cresud is an Argentinian land owner that produces crops and milk and raises cattle. Cresud buys and develops properties with agricultural prospects or appreciation potential. SELECTED OPERATING DATA FYE June YTD 3/31/09 Growth of production volume by product line: Crops -29% 64% 13% 35% Beef cattle -8% 1% -11% -22% Milk 100% 14% 25% -1% Corn as % of crop production 30% 46% 47% 45% Corn production growth -52% 156% 16% 67% % of gross income from production by type (non-gaap): Crops 39% 75% 80% loss Beef cattle 27% 16% 10% loss Milk 34% 9% 9% profit Growth of gross income from production by type (non-gaap): Crops -75% 781% 69% -234% Beef cattle -44% 164% 5% -124% Milk 50% 19% 70% -63% Total growth -56% 355% 59% -168% Total lands ( 000 hectares) % of owned and leased lands by use (period end): Crops 7% 8% 9% 15% Beef cattle 21% 17% 18% 18% Milk 0% 0% 1% 1% Sheep 0% 13% 13% 14% Land reserves 69% 59% 57% 51% Owned lands leased to others 2% 2% 1% 1% Equity to assets 1 73% 80% 77% 30% diluted ADSs out (avg) 2-4% 13% 27% 67% Source: Company filings, Manual of Ideas analysis. 1 Equity-to-assets ratio declined in FY09 primarily due to consolidation of IRSA. 2 The completed a rights offering in March INVESTMENT HIGHLIGHTS One of the largest land owners in Argentina, with 18 owned farms covering 1.1 million acres (444K hectares) as of June 30. See land use in table above. Owns 50.2% of IRSA (NYSE: IRS), one of Argentina s top real estate firms, with activities in residential properties, office buildings, shopping malls, and hotels. IRSA owns 12% of Banco Hipotecario, 63% of Alto Palermo (Nasdaq: APSA). Opportunistic land seller. Proceeds from land sales from FY04-FY08 amounted to 103 million pesos versus book value of 29 million pesos. Expanded into Brazilian agriculture in 2005; owns 8% of BrasilAgro following an equity raise. Aggressive repurchases under program covering 30 million shares or 6% of shares outstanding. Shares trade at 1.1 tangible book value. INVESTMENT RISKS & CONCERNS Controlled by chairman Eduardo Elsztain who owns one-third of Cresud, and indirectly owns onethird of IRSA and two-thirds of Alto Palermo. CEO Alejandro Elsztain is Eduardo Elsztain s brother. Alejandro is also CEO of Alto Palermo. Other governance issues include payment of management fee of 10% of net income to Consultores, which is 85%-owned by Eduardo Elsztain and 15%-owned by director Saúl Zang. 50+% ownership of IRSA exposes Cresud to Argentinian commercial and residential property market. The IRSA investment represented 35% of Cresud s balance sheet assets at the end of FY08. Expropriation highly unlikely, but a perceived risk nonetheless. While expropriation cannot be ruled out, such a measure appears unrealistic. During the financial crisis of 2002, Argentina had limited the payment of dividends to non-residents, but it never moved toward expropriation. Taxes lower export revenue. In 2007, Argentina raised the tax on soybean exports from 27.5% to 35%, the tax on wheat exports from 20% to 28%, and the tax on corn exports from 20% to 25%. Dependent on weather and prices of agricultural commodities, such as the price of cereals, oilseeds and by-products. Commodity prices are affected both by global and regional factors and are outside the company s control. Weather and disease affect Cresud s production of crops and beef cattle. 61% of FY08 revenue from top ten customers, with 46% from Cargill, Mastellone and Arre Beef (Mastellone buys Cresud s entire milk production). MAJOR HOLDERS Eduardo Elsztain 33% Other insiders 1% D. E. Shaw 9% TradeWinds 6% Leucadia 3% Pabrai 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE If you can stomach Argentinian political risk, Cresud represents a compelling real estate and agriculture-related investment. The company has a rock-solid balance sheet with a large net cash position, owing to a rights offering at $16 per ADS last March. The company owns 50+% of NYSE-listed Argentinian real estate firm IRSA. If net cash and investments are subtracted from market value, investors receive Cresud s 1.1 million acres of owned prime agricultural land at an unjustifiably low implied valuation by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 43 of 87

44 additional insight into CRESY: 2009 by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 44 of 87

45 General Growth Properties (GGWPQ) Chicago, IL, Services: Real Estate Operations Trading Data Consensus EPS Estimates Valuation Price: $2.07 (as of 6/12/09) Month # of P/E FYE 12/31/08 n/m 52-week range: $ $40.79 Latest Ago Ests P/E FYE 1/0/00 n/a Market value: $650 million This quarter n/a n/a n/a P/E FYE 12/30/00 n/a Enterprise value: $25.2 billion Next quarter n/a n/a n/a P/E FYE 12/30/01 n/a Shares out: million FYE 1/0/00 n/a n/a n/a EV / LTM revenue 7.6x Ownership Data FYE 12/30/00 n/a n/a n/a EV / LTM EBITDA 14.1x Insider ownership: 1% FYE 12/30/01 n/a n/a n/a EV / LTM EBIT 30.9x Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 0.4x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 57% Date Actual Estimate LTM EBIT yield 3% # of institutional owners: 258 n/a n/a n/a LTM pre-tax ROC 3% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue 973 1,263 1,800 3,073 3,256 3,262 3,362 3, Gross profit ,382 2,215 2,341 2,484 2,604 2, EBIT ,059 1,189 1,078 1, (96) Net income (370) 3 (396) Diluted EPS (0.08) (1.36) 0.01 (1.27) Cash from ops Capex 1,006 1,732 9, ,495 1, Free cash flow (546) (1,147) (8,281) (788) (631) (137) (414) 80 Cash & investments Total current assets Intangible assets Total assets 7,281 9,583 25,719 25,307 25,241 28,814 29,557 28,903 29,519 28,903 Short-term debt Total current liabilities Long-term debt 4,592 6,650 20,311 20,419 20,522 24,282 24,853 24,703 24,366 24,703 Total liabilities 5,747 7,913 23,575 23,374 23,577 27,358 27,803 27,136 27,535 27,136 Preferred stock Common equity 1,197 1,670 2,143 1,933 1,664 1,457 1,755 1,767 1,985 1,767 EBIT/capital employed 7% 7% 5% 5% 6% 5% 5% 3% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $80 $70 $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 45 of 87

46 BUSINESS OVERVIEW General Growth Properties (GGP) is a mall REIT that filed for Chapter 11 protection in April GGP owns and operates rental properties, primarily shopping centers, in the U.S. GGP also holds minor assets through unconsolidated affiliates in Brazil, Turkey and Costa Rica. GGP also develops and sells land for residential and commercial uses. GPP s business is conducted by GGP Limited Partnership, in which GGP owns a 98% equity interest. INVESTMENT HIGHLIGHTS Owns or manages 200+ regional shopping malls in 44 states, as well as master planned communities. Bill Ackman of Pershing Square estimates GGP equity value at $10-30 per share, based on 7.5%- 8.5% cap rate and LTM cash net operating income (NOI) of $2.5 billion. * Ackman became a director in early June, underscoring his commitment to GGP. GGP bankruptcy due to liquidity crisis rather than losses. The commercial lending market came to a virtual standstill in GGP was unable to refinance maturing loans, triggering cross-default provisions and forcing a Chapter 11 filing. Shares trade at 0.4x tangible book value. INVESTMENT RISKS & CONCERNS Equity recoveries subject to vagaries of Chapter 11 process and operating risks. Whether the equity emerges from the bankruptcy process with meaningful value depends on negotiations with debt holders, court decisions, and GGP s operating performance, which continues to deteriorate. Ackman thesis flawed? DIP loan was provided by Farallon and Elliott skilled potential adversaries. Ackman s assumption of 2.4% NOI decline in 2009 is aggressive, as Q1 annualized decline was 4.4%. Ackman uses a generous 7.5% cap rate to value GGP, even though comps trade at higher cap rates. * Continued deterioration in occupancy and FFO may erase any residual equity value, as the common equity represented only 6% of assets on March 31. Retail center occupancy fell to 90.9% at the end of Q1, down from 92.5% at yearend 2008, due to terminations, reduced demand for rental space, and reductions in charged and collected rents. * Summary of Ackman s valuation of GGP is included on the next page. ** Read counter-argument to Ackman s thesis, by Thomas Kirchner of the Pennsylvania Avenue Event-Driven Fund (PAEDX), at SELECTED OPERATING DATA FYE December Q09 Total assets (bn) $25.3 $25.2 $28.8 $29.6 $28.9 Selected balance sheet items as % of total assets: Investment in real estate: Land 11% 12% 11% 11% 12% Buildings/equipment 74% 77% 79% 80% 81% Accum. depreciation -8% -11% -13% -14% -15% Developments, other 15% 15% 15% 16% 16% Other assets 8% 7% 7% 7% 7% Mortgages, other debt 81% 81% 84% 84% 85% Other liabilities 12% 12% 11% 10% 8% Shareholders' equity 8% 7% 5% 6% 6% % of revenue by segment: 1 Retail and other: Minimum rents 55% 55% 60% 62% 65% Tenant recoveries 25% 24% 26% 28% 30% Overage rents, other 7% 7% 8% 6% 4% Master-planned communities: Land sales 13% 13% 6% 4% 2% Net operating margin by segment: Retail and other 66% 67% 67% 68% 67% Planned communities 2 20% 26% 24% 21% -9% Selected operating metrics retail business: Average occupancy 93% 94% 94% 93% 91% Tenant sales / sq. ft 3 $437 $453 $462 $438 $427 Annualized rent / sq. ft $33 $34 $45 $46 $46 Selected profitability data ($mn): Core FFO (123) FFO , (166) Net income (404) Selected profitability data per diluted share ($): Core FFO (0.38) FFO (0.52) EPS (1.27) Source: Company filings, Manual of Ideas analysis. 1 Segment revenue includes unconsolidated real estate ventures using the proportionate share method rather than the equity method. 2 Excludes provisions for impairment. 3 On trailing twelve-month basis. 4 Core FFO is defined as FFO excluding property net operating income (NOI) from master planned communities and the benefit from (provision for) taxes. Core FFO was a loss of $123 million in Q1, down from a $220 million profit in 1Q08, with $280 million of the negative swing due to impairments and $38 million due to restructuring costs. MAJOR HOLDERS Pershing Square 25% *** Founding Bucksbaum family 20% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? *** Includes cash-settled total return swaps. For more information, see THE BOTTOM LINE General Growth Properties is a bankrupt mall REIT that may emerge from Chapter 11 while preserving some value for common shareholders. Activist value investor Bill Ackman has amassed a 25% economic interest in the common equity at an average price of $0.83 per share and is leading the effort to recover equity value. While Ackman s thesis is well-reasoned, it is undeniable that any recovery on the equity depends heavily on assumptions regarding cap rates and future operating performance. General Growth has a leveraged capital structure, rendering any equity valuation exercise highly speculative by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 46 of 87

47 additional insight into GGWPQ: SLIDES FROM PERSHING SQUARE PRESENTATION, MAY 27, 2009 View and print full presentation at by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 47 of 87

48 Maui Land & Pineapple (MLP) Kahului, Maui, HI, Consumer Non-Cyclical: Food Processing Trading Data Consensus EPS Estimates Valuation Price: $8.02 (as of 6/12/09) Month # of P/E FYE 12/31/08 n/m 52-week range: $ $34.25 Latest Ago Ests P/E FYE 12/31/09 n/m Market value: $65 million This quarter -$0.64 -$ P/E FYE 12/31/10 n/m Enterprise value: $152 million Next quarter P/E FYE 12/31/11 n/m Shares out: 8.2 million FYE 12/31/ EV / LTM revenue 2.2x Ownership Data FYE 12/31/ EV / LTM EBITDA n/a Insider ownership: 46% FYE 12/31/ EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 3.5x Insider sales (last six months): 1 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 30% Date Actual Estimate LTM EBIT yield -48% # of institutional owners: 115 5/2/09 -$1.65 -$1.15 LTM pre-tax ROC -51% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit (2) (8) 5 (0) EBIT (10) 4 (1) (92) (73) (9) (10) Net income (6) 6 (0) (79) (92) (0) (13) Diluted EPS (0.84) 0.31 (0.06) (9.98) (11.57) (0.05) (1.65) Cash from ops (20) (8) (52) (46) (15) (10) Capex Free cash flow (7) (7) (66) (32) (66) (56) (20) (10) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed -7% 3% -1% 24% 9% 10% -68% -51% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 48 of 87

49 BUSINESS OVERVIEW Maui Land and Pineapple is a Hawaii landholding company that operates in three segments: Agriculture consists of growing and selling fresh pineapple. Resort includes the operations at the Kapalua Resort in Maui. Community Development includes real estate entitlement, development, construction, sales and leasing activities. SELECTED OPERATING DATA FYE December Q09 Revenue 22% -4% -14% -49% -39% Headcount -7% -6% -16% -20% -13% % of revenue by segment: Agriculture 40% 36% 31% 35% 31% Resort 22% 26% 23% 47% 55% Community dev. 38% 38% 44% 14% 13% Other 0% 0% 2% 3% 1% EBIT margin by segment: Agriculture -28% -56% -110% -28% -73% Resort -14% -33% -53% -14% -48% Community dev. 54% 78% -351% 54% -163% Assets by segment (period end) ($mn): Agriculture n/a Resort n/a Community dev n/a Depreciation by segment ($mn): Agriculture n/a Resort n/a Community dev n/a Capex by segment ($mn): Agriculture n/a Resort n/a Community dev n/a shares out (avg) 0% 0% 7% 2% 2% Source: Company filings, Manual of Ideas analysis. Restructured pineapple ops in 2007 to focus on fresh fruit and juice, exiting the low-return business of canning and processing solid-pack pineapples. Shares trade at 3.5x tangible book value (based on carrying values of real estate). INVESTMENT RISKS & CONCERNS Steve Case, formerly of AOL, owns 43%. Case is also majority owner of privately held Exclusive Resorts, a luxury timeshare firm. MLP owns 51% of Bay Holdings, 15% of which is owned by Exclusive Resorts. MLP may be disadvantaged in any deal with Exclusive Resorts, as Case owns a larger interest in the latter than he does in the company. Former CEOs Haruki and Webber stepped down last December and in May 2009, respectively. $89 million of debt and capital leases, $3 million of cash at the end of Q1. $70 million of obligations are due in the next year, including $56 million of debt. Revenue down 49% in 2008 and 39% in 1Q09. Community Development, historically the main profit driver, lost $3 million in Q1 compared to an $8 million profit in the year-ago period. Real estate sales slowed in 2008, with 111 acres sold for $4 million. This compares to 732 acres sold for $45 million in That said, the company sold a golf course for $50 million in March Agriculture and Resort segments reported losses in each of the past five years. Pineapple-growing operations lost $30 million pretax while the resort segment lost $20 million pre tax in ,800 acres of land is in entitlement process. There is a risk that entitlements may be delayed. INVESTMENT HIGHLIGHTS Owns 24,500 acres of Maui land, acquired in and listed on the balance sheet at cost. 16% MAJOR HOLDERS of the land is used in operations while the rest is Ex-CEO Webber <1% Steve Case 43% Other insiders classified as pasture or forest reserve. MLP land 8% Dimensional 4% Columbia 3% River Road 3% and land improvements are carried at $9 million and $57 million, respectively. MLP s recent enterprise RATINGS value implies a valuation of ~$8K per acre of land. VALUE Intrinsic value materially higher than market value? Operates the Kapalua Resort. The property spans MANAGEMENT Capable and properly incentivized? 1,650 acres bordering the ocean, with three sand FINANCIAL STRENGTH Solid balance sheet? beaches and two championship golf courses. Two MOAT Able to sustain high returns on invested capital? hotels are on the property, including a Ritz-Carlton. EARNINGS MOMENTUM Fundamentals improving? Sold Plantation Golf Course for $50 million in MACRO Poised to benefit from economic and secular trends? March to reduce debt. The company plans to sell EXPLOSIVENESS 5%+ probability of 5x upside in one year? additional real estate in 2009 to provide liquidity. Restructuring to reduce cash outflows. The company slashed headcount by 20% in 2008 and an additional 13% in March THE BOTTOM LINE Maui Land & Pineapple is a landholding company that owns 24,500 acres of land on Maui. As the company acquired the land in , the carrying value of $9 million materially understates current value. MLP is facing a liquidity crunch, and the company recently sold one of a golf course for $50 million to raise cash. Assuming a land value range of $15K-$40K per acre, which corresponds to prices at which selected large vacant land parcels are currently listed in Hawaii, the land assets could be worth as much as $400 million to $1 billion. The shares recently traded at an enterprise value per acre of $8K by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 49 of 87

50 Steak n Shake (SNS) Indianapolis, IN, Services: Restaurants, Member of S&P SmallCap Trading Data Consensus EPS Estimates Valuation Price: $7.86 (as of 6/12/09) Month # of P/E FYE 9/24/08 n/m 52-week range: $ $12.10 Latest Ago Ests P/E FYE 9/30/ x Market value: $226 million This quarter $0.03 -$ P/E FYE 9/30/ x Enterprise value: $356 million Next quarter P/E FYE 9/30/11 n/a Shares out: 28.8 million FYE 9/30/ EV / LTM revenue 0.6x Ownership Data FYE 9/30/ EV / LTM EBITDA 22.4x Insider ownership: 16% FYE 9/30/11 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 3 LT EPS growth n/a n/a n/a P / tangible book 0.8x Insider sales (last six months): 4 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 60% Date Actual Estimate LTM EBIT yield -5% # of institutional owners: 284 4/24/09 $0.08 -$0.10 LTM pre-tax ROC -4% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 9/25/02 9/24/03 9/29/04 9/28/05 9/27/06 9/26/07 9/24/08 4/8/09 4/9/08 4/8/09 Revenue Gross profit EBIT (35) (17) (5) 3 Net income (23) (20) (3) 2 Diluted EPS (0.81) (0.71) (0.10) 0.08 Cash from ops Capex Free cash flow (11) (25) (7) 26 (4) 10 Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 11% 10% 12% 12% 10% 3% -8% -4% n/m n/m $25 Ten-Year Stock Price Performance and Trading Volume Dynamics $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 50 of 87

51 BUSINESS OVERVIEW Steak n Shake is an owner and franchisor of full-service dining restaurants. The company was founded in 1934 and has grown to include ~415 company-operated and ~70 franchised restaurants in 21 states. Most of the company s restaurants are located in the Midwest and Southeast. SELECTED OPERATING DATA FYE September H09 Selected growth data: total revenue 10% 5% 2% -7% -2% same store sales 3% -2% -4% -7% 1% guest traffic -1% -6% -6% -10% 4% avg guest expend. 4% 4% 2% 3% -3% headcount 8% 7% -4% -9% n/a Number of restaurant locations: Company owned Company leased Franchised company owned 1% 8% 9% -14% -1% company leased 14% 7% -3% 1% 0% franchised -18% -2% 19% 19% 9% total restaurants 5% 6% 3% -2% 1% Selected items as a % of revenue: Gross profit 77% 50% 77% 75% 76% EBIT 2 10% 9% 5% -1% 2% D&A 4% 5% 5% 6% 5% Capex 10% 13% 10% 5% 1% shares out (avg) 0% 1% 1% 1% 1% Source: Company filings, Manual of Ideas analysis. 1 Number of stores at the end of 1H09 represents MOI estimate. 2 Excludes pre-opening costs and asset impairments. INVESTMENT HIGHLIGHTS Owns land and buildings of 164 properties, 145 of which are restaurants. Past real estate sales have occurred at roughly $1-$1.5 million per owned restaurant. At the end of March, the company had $21 million in assets held for sale, consisting of 13 closed restaurants and 18 parcels of land. PP&E excluding the assets held for sale is carried at $413 million vs. debt and capital leases of $165 million. Franchisees pay one-time fee of $40K for the first restaurant, $35K for the second and $30K for each additional restaurant opened. On-going fees are charged on gross receipts and include: 1% royalty, 3% service and 5% marketing, due monthly. The initial term of a franchise agreement is 20 years. New CEO Sardar Biglari (31) appointed in 4Q08, following his win of two board seats. Biglari is an activist investor who is CEO and chairman of Western Sizzlin (WEST), a small restaurant chain. Turnaround strategy: improve store-level profitability, grow through franchising, reduce G&A, and pay executives based on performance. Cut headcount by 9% in FY08, closed one owned restaurant and refranchised seven locations in 1H09. Same store sales rose 1% and guest traffic increased 4% in 1H09, even as revenue fell 2%. New menu items and performance-based pay may be contributing to the performance improvement. Moratorium on new company-owned locations. Biglari seeks maximizing FCF by allocating capital to maintenance capex only, ~$6-8 million per year. Shares trade at 0.6x enterprise value to trailing revenue and 0.8x tangible book value. INVESTMENT RISKS & CONCERNS Recession threatens turnaround. Continued weakness in consumer spending or higher gas prices may negatively impact operating results. Operating margin fell from 10% in FY05 to -1% in FY08, as G&A rose from $98K to $125K per company-owned store. The company would save $12 million if it returned to historical G&A levels. 43% of sales from St. Louis (12%), Indianapolis (12%), Orlando (7%), Chicago (7%), Atlanta (6%). Weak seasonality in FQ1 and FQ2 reflects lower sales during the cold-weather season, pressuring margins and forcing SNS to be more promotional. Highly competitive business, with many sole proprietors with low labor costs competing against chain restaurants, which have higher cost structures. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E DIN 550 2, x n/m 19x 14x RT x.8x 14x 12x RRGB x 1.8x 11x 10x DENN x n/m 9x 7x SNS x.9x 131x 28x MAJOR HOLDERS CEO Biglari s Lion Fund 13% Other insiders 3% HBK 9% Dimensional 7% Barclays 7% T Rowe 6% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Steak n Shake is an Indianapolis-based restaurant chain that owns 164 real estate properties. While operating performance deteriorated under prior management, value investor Sardar Biglari became CEO in 4Q08. His turnaround strategy focuses on maximizing FCF by cutting costs and refranchising company-operated locations. Early signs suggest the turnaround may be working, as same store sales and guest traffic rose 1% and 3%, respectively, in 1H09. Continued economic weakness could threaten the turnaround, but the company s large ownership of real estate provides strong downside protection by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 51 of 87

52 Other Companies with Real Estate Assets We profile the following companies: Alexander & Baldwin (ALEX) Assisted Living Concepts (ALC) Dynacq Healthcare (DYII) Natuzzi (NTZ) Panasonic (PC) PriceSmart (PSMT) Sears Holdings (SHLD) Sonae Capital (LISBON: SONC) St. Joe (JOE) Target (TGT) Tejon Ranch (TRC) Vail Resorts (MTN) Winthrop Realty Trust (FUR) 2009 by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 52 of 87

53 Alexander & Baldwin (ALEX) Honolulu, HI, Transportation: Water Transportation, Member of S&P MidCap Trading Data Consensus EPS Estimates Valuation Price: $24.97 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $49.05 Latest Ago Ests P/E FYE 12/31/ x Market value: $1.0 billion This quarter $0.21 $ P/E FYE 12/31/ x Enterprise value: $1.5 billion Next quarter P/E FYE 12/31/ x Shares out: 41.0 million FYE 12/31/ EV / LTM revenue 0.5x Ownership Data FYE 12/31/ EV / LTM EBITDA n/a Insider ownership: 2% FYE 12/31/ EV / LTM EBIT 6.1x Insider buys (last six months): 0 LT EPS growth 6.7% 6.7% 3 P / tangible book 1.0x Insider sales (last six months): 2 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 79% Date Actual Estimate LTM EBIT yield 16% # of institutional owners: 411 4/30/09 $0.07 $0.03 LTM pre-tax ROC 15% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue 1,084 1,224 1,486 1,597 1,590 1,669 1,898 3, Gross profit EBIT Net income Diluted EPS (0.05) Cash from ops Capex Free cash flow 11 (78) (175) (8) Cash & investments Total current assets Intangible assets Total assets 1,553 1,760 1,778 2,071 2,251 2,479 2,350 2,327 2,458 2,327 Short-term debt Total current liabilities Long-term debt Total liabilities ,057 1,224 1,349 1,278 1,265 1,346 1,265 Preferred stock Common equity ,014 1,027 1,130 1,072 1,062 1,112 1,062 EBIT/capital employed 8% 11% 14% 15% 10% 10% 10% 15% n/m n/m $70 Ten-Year Stock Price Performance and Trading Volume Dynamics $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 53 of 87

54 BUSINESS OVERVIEW Alexander & Baldwin, founded in 1870, operates in five segments: Ocean Transport (Matson Navigation) carries freight in the Pacific between American, Chinese and other ports. Logistics (Matson Integrated Logistics) operates as an intermediary providing rail, highway, air and other logistics services. Real Estate Sales and Leasing develops, sells and manages residential, commercial and land properties. Agribusiness grows sugar cane and coffee in Hawaii. SELECTED OPERATING DATA FYE December Q09 % of revenue by segment: 1 Transportation: Ocean transport 55% 60% 60% 54% 63% Logistics services 27% 28% 26% 23% 24% Real estate 11% 5% 7% 17% 9% Agribusiness 8% 8% 7% 7% 6% Revenue growth by segment: Ocean transport 3% 8% 6% 2% -17% Logistics services 15% 3% -2% 1% -26% Real estate 17% -52% 33% 184% -87% Agribusiness 9% 3% -3% 0% -21% total revenue 8% -1% 5% 14% -45% headcount 6% 1% 3% -4% n/a EBIT margin by segment: Ocean transport 15% 11% 13% 10% 0% Logistics services 3% 5% 5% 4% 2% Real estate 39% 55% 57% 26% 32% Agribusiness 9% 5% 0% -10% -11% Selected items as a % of revenue: Gross profit 20% 18% 19% 17% 15% EBIT 11% 9% 10% 8% 1% D&A 5% 5% 6% 5% 8% Capex 14% 18% 7% 6% 5% shares out (avg) 2% -1% -2% -3% 0% Source: Company filings, Manual of Ideas analysis. 1 Excludes reconciling items, which generally amount to -1% of total revenue. INVESTMENT HIGHLIGHTS Derives most revenue from ocean transportation, utilizing vessels to ship cargo to Hawaii and other ports for a fee. Owned assets of $1.2 billion include 13 container ships, 4 barges, 24,000+ containers, 14,000+ container chassis and 900 auto-frames. Owns 88,790 acres of land in Hawaii and 450 acres in eight of the Lower 48 states. The land is carried at $146 million. Of the Hawaiian land, 745 acres are fully entitled for urban development, 58,840 for agriculture/pasture, and 29,205 acres are watershed/conservation land. All land on the U.S. mainland is fully entitled for urban development. Commercial real estate portfolio consists of 21 properties in Hawaii (1.1 million leasable sq. ft.) and 22 properties in eight states on U.S. mainland (6.6 million sq. ft.). Occupancy rates at Q1-end were 95% in Hawaii and 90% on the U.S. mainland. W. Allen Doane (61) joined in 1991, became CEO in 1998 and chairman in He began his career at C. Brewer, once considered one of Hawaii s Big Five companies, along with Alexander & Baldwin. Q1 headcount reduction of 11%, salary freezes and reduced executive comp are expected to save $12-14 million per year. Transportation network efficiencies should save another $7-10 million. 106 years of consecutive dividend payments, including a full-year dividend of $1.26 per share in Dividends have increased 40% since Shares trade at 1.0x tangible book and 6x enterprise value to trailing EBIT. INVESTMENT RISKS & CONCERNS Q1 revenue fell 45%, partly due to unparalleled volume drop in ocean transportation (revenue down 17%) and logistics (revenue down 26%), which accounted for 77% of revenue in Real estate segment sales dropped 87% to $27 million. Dire outlook for ocean transportation and logistics services, with 2009E volumes and margins well below historical run rates. In agribusiness, A&B is evaluating strategic options. Occupancy rates in commercial portfolio are likely to decline. $483 million of net debt, comprised of revolving loans (27%), other term loans (36%), debt secured by vessels (35%), and real estate-secured term debt (2%). $90 million of debt matures by yearend % of the workforce is unionized. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E EGLE 290 1, x.6x 7x 19x ISH x.8x n/a n/a HRZ x n/m 11x 6x ALEX 1,020 1,500.5x 1.0x 30x 17x MAJOR HOLDERS CEO Doane 2% Other insiders 3% Third Avenue 8% Dimensional 6% Barclays 6% PRIMECAP 4% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Alexander & Baldwin is an ocean transport carrier and logistics services provider that owns a fleet of vessels, 89K acres of land in Hawaii and a portfolio of commercial real estate in Hawaii and on the U.S. mainland. The transportation business has suffered from the economic slowdown, with revenue down 45% in Q1. While the near-term outlook remains weak, the company has significant assets and appears to be modestly undervalued at roughly 1x tangible book value by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 54 of 87

55 additional insight into ALEX: SLIDES FROM COMPANY PRESENTATION, MAY 1, 2009 For complete presentation, including Hawaii economic indicators and industry trends, visit by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 55 of 87

56 Assisted Living Concepts (ALC) Menomonee Falls, WI, Health Care: Healthcare Facilities Trading Data Consensus EPS Estimates Valuation Price: $14.38 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $39.75 Latest Ago Ests P/E FYE 12/31/ x Market value: $172 million This quarter $0.28 $ P/E FYE 12/31/10 9.9x Enterprise value: $313 million Next quarter P/E FYE 12/31/11 n/a Shares out: 12.0 million FYE 12/31/ EV / LTM revenue 1.4x Ownership Data FYE 12/31/ EV / LTM EBITDA 10.3x Insider ownership: 15% FYE 12/31/11 n/a n/a n/a EV / LTM EBIT 27.2x Insider buys (last six months): 0 LT EPS growth 12.0% 12.0% 1 P / tangible book 0.7x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 40% Date Actual Estimate LTM EBIT yield 4% # of institutional owners: 160 4/30/09 $0.24 $0.28 LTM pre-tax ROC 3% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT (10) Net income (2) 4 (12) Diluted EPS (0.16) 0.31 (0.98) Cash from ops Capex Free cash flow Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 9% 8% 9% 8% 3% n/m n/m $70 Ten-Year Stock Price Performance and Trading Volume Dynamics $60 $50 $40 $30 $20 $10 $0 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 56 of 87

57 BUSINESS OVERVIEW Assisted Living Concepts operates 216 assisted living residences in 20 states totaling 9,287 units. ALC was separated from Extendicare in an IPO in SELECTED OPERATING DATA FYE December Q09 revenue 13% -1% 2% -4% locations 0% 0% 4% 0% Number of assisted living locations: Owned Leased Total operated owned 1% 1% 0% 0% leased 0% 0% 15% 0% Capacity (units) 8,302 8,535 9,154 9,287 Change (y-y) 0% 3% 7% 1% Occupancy rate 2 85% 80% 69% 66% Private pay as % of occupancy 72% 80% 88% 91% revenue 79% 85% 92% 94% Average daily census (ADC), i.e., number of occupied units: Private pay 5,213 5,297 5,527 5,435 Medicaid 2,012 1, ADC private pay 0% 2% 4% -3% ADC Medicaid -6% -33% -46% -39% ADC total -1% -8% -6% -8% Daily revenue rate (avg) $87 $94 $102 $107 Selected items as a % of revenue: EBIT 3 12% 14% 13% 11% D&A 7% 8% 8% 9% Capex 6% 5% 8% 7% shares out (avg) 0% -2% -8% -4% Source: Company filings, Manual of Ideas analysis. 1 ALC acquired 8 leased residences totaling 541 units for $15 million in Percentage of average daily census to total units available for occupancy. 3 Excludes goodwill impairment of $16 million in 1Q09. INVESTMENT HIGHLIGHTS Owns 153 of 216 assisted living facilities operated by the company, with owned capacity of 6,600 units and net PP&E of $427 million (gross PP&E has depreciated only 15%). The company bought one facility for $132,000 per unit in 2007 and took over 8 leased facilities for $27,000 per unit in Assisted living residences typically range from 40 to 60 units and offer a home-like setting and assistance with the activities of daily living. Assisted living residences fall in the middle of the spectrum of care and service provided to seniors in connection with their living arrangements. ALC does not operate skilled nursing facilities, which provide 24-hour care to their residents. Strategy: grow through acquisitions, boost occupancy rate, boost percentage of revenue from private-pay sources, and leverage scale advantages. Expansion of existing facilities to add 400+ units at cost of $50 million, or $125,000 per unit. 211 of the planned units were opened as of March 31. Lauri Bebo (38) became CEO in She was previously at Extendicare, where she held various management positions from She was at Living Centers of America from Repurchased $2 million of stock in Q1 ($15 per share). The company bought back $27 million of stock in 2008 and $39 million in Shares trade at 0.7x tangible book value, 1.4x EV to trailing revenue and 13x 2009E EPS. INVESTMENT RISKS & CONCERNS Revenue down 4% in Q1, as occupancy declined from 69% at yearend 2008 to 66% at Q1-end. Units occupied by Medicaid residents declined 27% while occupied private-pay units fell 2% in the quarter. Controlled by the Jodrey family, which owns 53% of the company via Scotia Investments. David Hennigar, chairman of the board, and Jesse Brotz, a director, are both affiliated with the Jodrey family. $142 million of net debt, most of which is floatingrate debt. The company had $79 million drawn on its $125 million revolving credit facility at yearend The revolver expires in November % of owned capacity concentrated in five states: 17% in Texas, 13% in Indiana, 10% in Wisconsin, 9% in Ohio and 9% in Washington. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E BKD 1,150 3, x 1.9x n/m n/m SRZ x 2.1x n/a n/a FVE x.7x 4x 4x ALC x.7x 13x 10x MAJOR HOLDERS CEO Bebo <1% Jodrey family 53% Advisory 18% Steadfast 7% Bandera 7% Vanguard 4% Findlay 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE ALC is a Wisconsin-based operator of assisted living residences that owns the real estate associated with 153 of its 216 facilities. Over the past few years, the company has focused on phasing out Medicaid residents while boosting private-pay occupancy. Overall occupancy has declined, as economic weakness has adversely affected private-pay growth. Occupancy declined to 66% at the end of Q1, pressuring margins and prompting scrutiny of the company s balance sheet. ALC employs mostly floating-rate leverage, which could become an issue if low occupancy persists or interest rates rise by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 57 of 87

58 Dynacq Healthcare (DYII) Houston, TX, Health Care: Healthcare Facilities Trading Data Consensus EPS Estimates Valuation Price: $3.37 (as of 6/12/09) Month # of P/E FYE 8/31/ x 52-week range: $ $7.30 Latest Ago Ests P/E FYE 1/0/00 n/a Market value: $52 million This quarter n/a n/a n/a P/E FYE 12/30/00 n/a Enterprise value: $13 million Next quarter n/a n/a n/a P/E FYE 12/30/01 n/a Shares out: 15.5 million FYE 1/0/00 n/a n/a n/a EV / LTM revenue 0.3x Ownership Data FYE 12/30/00 n/a n/a n/a EV / LTM EBITDA n/m Insider ownership: 58% FYE 12/30/01 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 0.8x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 3% Date Actual Estimate LTM EBIT yield -31% # of institutional owners: 31 n/a n/a n/a LTM pre-tax ROC -15% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 8/31/02 8/31/03 8/31/04 8/31/05 8/31/06 8/31/07 8/31/08 2/28/09 2/29/08 2/28/09 Revenue Gross profit EBIT (6) (3) (4) 4 9 (4) 8 0 Net income (2) (5) (6) 4 8 (2) 7 0 Diluted EPS (0.30) (0.20) (0.21) (0.13) Cash from ops (3) Capex Free cash flow 8 (2) 7 1 (3) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 88% 86% -11% -7% -13% 9% 23% -15% n/m n/m $35 Ten-Year Stock Price Performance and Trading Volume Dynamics $30 $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 58 of 87

59 BUSINESS OVERVIEW Dynacq manages acute care hospitals that provide bariatric, orthopedic, neuro-spine, and other specialized surgeries. The hospitals include operating rooms, pre- and post-op space, ICUs, nursing units, and diagnostic facilities, as well as adjacent buildings that lease space to physicians. Dynacq owns a hospital in Pasadena, TX (near Houston) and another in Garland, TX (near Dallas). Most surgeries are covered by workers comp or out-of-network commercial insurance. The company participates minimally in managed care contracts. Dynacq sold a hospital in Baton Rouge, LA in FY08 and a surgery center in West Houston, TX in FY07. SELECTED OPERATING DATA FYE August H09 Calculation of net revenue ($mn): Gross billed charges $100 $87 $96 $146 $77 Contractual allowance Net revenue $42 $36 $43 $60 $24 Net revenue growth 6% -14% 19% 41% -32% Allowance percentage 58% 59% 55% 59% 69% % of net patient revenue by facility: Pasadena facility 72% 57% 38% 39% n/a Garland facility 27% 43% 62% 61% n/a INVESTMENT HIGHLIGHTS Strong balance sheet, with $34 million of net cash and $4 million of net assets held for sale on May 31. Repurchased 280,000 shares at average cost of $5.60 per share from March through July. Shares trade at 0.8x tangible book value. INVESTMENT RISKS & CONCERNS Contractual allowance declined from FY05- FY07, but rose sharply in 1H09. The recent rise in the contractual allowance has negatively impacted profitability and once again called into question the company s revenue model. Moved corporate domicile from Delaware to Nevada in August It is unclear why the company chose to reincorporate in Nevada. The company indemnifies directors against damages for breach of their fiduciary duty and advance expenses to the full extent permitted by Nevada law. Uncertainty regarding recoveries on accounts receivable in Medical Dispute Resolution (MDR) process. The company has attempted to collect on MDR accounts receivable and has recorded a total of $20 million in settlements for service dates ranging from It is impossible to predict the level of future MDR process recoveries. Difference between gross billed charges and net revenue. The company had gross billed charges of $100 million in the nine months ended May 31, yet it recorded net revenue of only $49 million. The delta represents a contractual allowance, which Dynacq estimates based on subjective and hard-tofollow criteria. The allowance as a percentage of gross billings has a large impact on profitability and has exhibited large volatility. For example, the allowance was 51% for the nine months ended May 31, yet it rose to 61% for the quarter ended May 31. Low visibility into capital dealings. The company formed Dynacq Huai Bei Healthcare (DHBH) as a Chinese corporation. The company recently capitalized DHBH with $10 million, making it potentially difficult for shareholders to follow the money now that it is at the Chinese subsidiary level. In July, the company sold its interest in a property owned by a Chinese joint venture company (DeAn) for $4.6 million. It is unclear whether the company obtained fair market value in the sale. The JV management contract was to be transferred to DHBH. We cannot ascertain the rationale for these dealings and find them murky. COO Alan Beauchamp resigned in July. He was not immediately replaced. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E UHS 2,570 3,510.7x 3.0x 13x 12x CYH 2,390 10, x n/m 10x 9x LPNT 1,490 2,840.7x 13.8x 11x 10x THC 1,470 5,450.6x n/m n/m 306x HMA 1,270 4,270.6x n/m 12x 11x AMSG x n/m 12x 11x RHB x 4.9x 13x 12x MDTH x.7x 14x 13x DYII x.8x n/a n/a MAJOR HOLDERS CEO Chan 54% Other insiders 5% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Dynacq is a cheap company by almost any measure, with significant excess cash and real estate assets. However, operating performance is exceedingly difficult to analyze due to major accounts receivable reserves and reimbursement issues. In addition, we dislike the company s murky dealings in China, including the movement of cash to Chinese subsidiaries by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 59 of 87

60 Natuzzi (NTZ) Santeramo, Italy, Consumer Cyclical: Furniture & Fixtures Trading Data Consensus EPS Estimates Valuation Price: $2.09 (as of 6/12/09) Month # of P/E FYE 12/31/07 n/m 52-week range: $ $4.17 Latest Ago Ests P/E FYE 1/0/00 n/a Market value: $115 million This quarter n/a n/a n/a P/E FYE 12/30/00 n/a Enterprise value: $52 million Next quarter n/a n/a n/a P/E FYE 12/30/01 n/a Shares out: 54.8 million FYE 1/0/00 n/a n/a n/a EV / LTM revenue 0.1x Ownership Data FYE 12/30/00 n/a n/a n/a EV / LTM EBITDA n/a Insider ownership: 54% FYE 12/30/01 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth n/a n/a n/a P / tangible book 0.2x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 27% Date Actual Estimate LTM EBIT yield -135% # of institutional owners: 28 n/a n/a n/a LTM pre-tax ROC -13% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 9/30/08 9/30/07 9/30/08 Revenue 1,123 1,073 1, , Gross profit EBIT (21) 23 (68) (70) (15) (17) Net income (10) 20 (84) (114) (20) (23) Diluted EPS (0.18) 0.37 (1.53) (2.08) (0.36) (0.41) Cash from ops (22) (42) 1 (18) Capex Free cash flow 40 (13) (51) (61) (8) (23) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed n/m 10% 9% -3% 4% -13% -13% n/m n/m $25 Ten-Year Stock Price Performance and Trading Volume Dynamics $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 60 of 87

61 BUSINESS OVERVIEW Natuzzi, based in Milan, Italy, produces residential upholstered furniture. The company exports its sofas and armchairs to 123 markets on five continents under two brands, Natuzzi and Italsofa. The company has vertically integrated manufacturing operations based primarily in Italy. INVESTMENT HIGHLIGHTS Italy s largest furniture maker, with revenue of 666 million and upholstered furniture shipments of 2.7 million seats in Maker of quality sofas and armchairs, featuring cutting-edge design and Italian craftsmanship. Large owner of real estate in Italy and other countries, with owned corporate, warehouse and production space of nearly 2 million square feet in Italy and nearly 2 million square feet outside of Italy, primarily in Romania, Brazil and China. The company also owns approximately 70 retail stores in various countries. The company s PP&E had a carrying value of 212 million at yearend 2008, but fair value could be significantly higher. Shares trade at 0.2x tangible book value and 0.1x enterprise value to trailing revenue. INVESTMENT RISKS & CONCERNS Posted 6 million operating loss in 4Q08, with no clear path to profitability, particularly in a weak consumer spending environment. Unrealistic goal of 1 billion in revenue and 15% operating margin in 2011? While Natuzzi claims to be on track to achieve its three-year cost reduction and revenue growth plans, management has zero credibility on such ambitious projections. Management turnover, succession issue risk or opportunity? Pasquale Natuzzi, who founded the company in 1959, was reappointed CEO in March following Aldo Uva s resignation for exclusively personal reasons. Uva had served as CEO for nine months. While his abrupt resignation is troubling, it may force much-needed change at the company, as Pasquale Natuzzi is 69 years old and unlikely to manage the company for years to come. Bloated cost structure due to vertically integrated manufacturing operations. The company still produces most of its upholstered furniture in company-owned factories in the highcost Italian market. This has not only produced losses but also tied up valuable real estate holdings. SELECTED OPERATING DATA FYE December % of revenue by segment: Upholstery 89% 90% 89% 88% Other 11% 10% 11% 12% % of upholstery revenue by covering material: Leather upholstered furniture 84% 87% 89% n/a Fabric upholstered furniture 16% 13% 11% n/a Selected growth data: Total revenue -11% 10% -14% 5% Upholstery units sold -8% 7% -14% 5% Upholstery units Americas -11% -2% -14% 8% Upholstery units Europe -4% 15% -15% -1% Upholstery units ROW -13% 24% -6% 25% % of upholstery revenue by geography: Americas 41% 37% 35% 35% Europe 53% 56% 57% 55% ROW 7% 7% 8% 9% % of upholstery revenue by brand: Natuzzi 66% 63% 60% 57% Italsofa 34% 37% 40% 43% Upholstery units by brand ('000 seats): Natuzzi 1,451 1,507 1,172 1,133 Italsofa 1,360 1,510 1,421 1,590 Selected items as % of revenue: Gross profit 31% 33% 27% 28% SG&A expense 33% 31% 35% 33% EBIT -2% 2% -8% -5% D&A 5% 4% 5% 5% Capex 3% 2% 4% 2% Return on tangible equity -3% 3% -14% -16% Tangible equity to assets (avg) 69% 69% 68% 65% diluted shares out (avg) 0% 0% 0% 0% $/Euro exchange rate (avg) Source: Company filings and press releases, Manual of Ideas analysis. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / T. Book This FY P/E Next FY P/E ETH x 1.3x n/m 35x FBN x.8x n/m 22x LZB x.6x n/m n/m NTZ x.2x n/a n/a MAJOR HOLDERS Founder Pasquale Natuzzi and family 59% Royce 10% Brandes 6% Mackenzie 4% Marathon 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Natuzzi is one of the cheapest public companies on an asset value basis. The company had net net current assets of 120 million, or approximately $160 million, as of yearend 2008, exceeding recent market value. In addition, the company owns close to four million square feet of commercial real estate and other hard assets, carried on the books for 212 million but likely worth meaningfully more. Investors are obviously concerned that the company is unwilling or unable to make the structural changes necessary to survive. However, with founder Pasquale Natuzzi owning more than 50% of the economics, it is difficult to conceive the company continuing along a bankruptcy path without decisive action at some point by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 61 of 87

62 additional insight into NTZ: OWNED REAL ESTATE PROPERTIES (as of April 30, 2008, based on the company s 20-F filing dated June 30, 2008) Natuzzi owns substantial real estate properties in Italy and other countries free and clear of any mortgage debt. The following table shows the location, size and function of the company s real estate properties. In addition to the properties shown in the table, Natuzzi also owns 68 stores, 25 of which are located in Italy, and three outlet stores, two of which are located in Italy and one in Spain. Size Location (square meters) Function Italy Santeramo in Colle (BA) 29,000 Headquarters, prototyping, manufacturing of wooden frames, showroom Santeramo in Colle, Iesce (BA) 27,500 Sewing and product assembly Matera La Martella 38,000 General warehouse of sofas and accessory furnishing Matera Iesce 12,500 Leather cutting, sewing and product assembly Altamura (BA) via dell Avena 5,800 Warehouse Altamura (BA) via Graviscella 8,500 Warehouse Altamura (BA) c.da Fornello 6,500 Warehouse Altamura (BA) NDS 3,700 Accessory Furnishings warehouse Ginosa (TA) 14,500 Sewing and product assembly Laterza (TA) 10,000 Leather cutting Laterza (TA) 13,000 Fabric and lining cutting, leather warehouse Laterza (TA) 20,000 Accessory Furnishing Packaging and Warehouse Qualiano (NA) 12,000 Polyurethane foam production Pozzuolo del Friuli (UD) 20,000 Leather dyeing and finishing Other Countries: High Point North Carolina U.S.A. 10,000 Office and showroom for Natuzzi Americas Baia Mare Romania 75,600 Shanghai China 43,500 Salvador de Bahia (Bahia) Brazil 28,700 Pojuca (Bahia) Brazil 30,000 Leather cutting, sewing and product assembly, manufacturing of wooden frames, polyurethane foam shaping, fiberfill production and wood and wooden product manufacturing Leather cutting, sewing and product assembly, manufacturing of wooden frames, polyurethane foam shaping, fiberfill production Leather cutting, sewing and product assembly, manufacturing of wooden frames, polyurethane foam shaping, fiberfill production Leather cutting, sewing and product assembly, manufacturing of wooden frames, wooden feet, polyurethane foam shaping, fiberfill production Note: The company s net PP&E line item amounted to 212 million as of December 31, 2008, but the fair market value of the company s real estate properties may be substantially higher by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 62 of 87

63 Panasonic (PC) Kadoma, Japan, Consumer Cyclical: Audio & Video Equipment Trading Data Consensus EPS Estimates Valuation Price: $13.64 (as of 6/12/09) Month # of P/E FYE 3/31/09 n/m 52-week range: $ $23.19 Latest Ago Ests P/E FYE 3/31/ x Market value: $28.2 billion This quarter n/a n/a n/a P/E FYE 3/31/11 n/a Enterprise value: $24.3 billion Next quarter n/a n/a n/a P/E FYE 3/30/12 n/a Shares out: 2,069.9 million FYE 3/31/ EV / LTM revenue 0.3x Ownership Data FYE 3/31/11 n/a n/a n/a EV / LTM EBITDA n/a Insider ownership: 10% FYE 3/30/12 n/a n/a n/a EV / LTM EBIT 32.8x Insider buys (last six months): 0 LT EPS growth 2.5% 2.5% 1 P / tangible book 1.0x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 5% Date Actual Estimate LTM EBIT yield 3% # of institutional owners: 139 5/15/09 -$2.28 n/a LTM pre-tax ROC 4% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 3/31/03 3/31/04 3/31/05 3/31/06 3/31/07 3/31/08 3/31/09 3/31/09 3/31/08 3/31/09 Revenue 76,515 77,322 90,077 91,945 94,156 93,750 80,276 79,026 22,733 15,939 Gross profit 21,483 22,398 26,232 28,315 28,054 27,825 21,690 21,413 7,108 3,541 EBIT 1,309 2,021 3,189 3,765 4,751 5, ,386 (1,878) Net income (201) ,596 2,245 2,914 (3,918) (3,918) 637 (4,593) Diluted EPS (0.09) (1.88) (1.87) 0.30 (2.22) Cash from ops 7,219 5,056 4,946 5,948 5,505 3,852 1,206 1,206 2,268 (75) Capex 2,549 2,848 3,641 3,688 4,252 4,329 5,392 5,392 1,076 1,287 Free cash flow 4,670 2,208 1,305 2,261 1,253 (477) (4,186) (4,186) 1,192 (1,362) Cash & investments 16,170 14,966 13,713 17,937 16,078 13,773 12,045 12,045 13,773 12,045 Total current assets 41,207 39,024 41,666 45,553 43,406 39,274 33,025 33,025 39,274 33,025 Intangible assets 5,018 5,086 5,825 5,348 5,117 5, Total assets 80,991 76,891 83,288 82,335 81,635 76,949 66,194 66,194 76,949 66,194 Short-term debt 4,088 3,801 4,680 4,199 2,841 2,000 1,370 1,370 1,615 1,370 Total current liabilities 26,576 26,565 29,244 29,824 28,344 26,474 20,680 20,680 26,474 20,680 Long-term debt 6,081 4,762 4,933 2,730 2,344 2,402 6,733 6,733 2,402 6,733 Total liabilities 48,135 41,210 46,649 43,180 41,146 38,262 37,415 37,415 38,262 37,415 Preferred stock Common equity 32,857 35,681 36,639 39,155 40,489 38,686 28,779 28,779 38,686 28,779 EBIT/capital employed 8% 14% 19% 19% 25% 28% 4% 4% n/m n/m $35 Ten-Year Stock Price Performance and Trading Volume Dynamics $30 $25 $20 $15 $10 $5 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 63 of 87

64 BUSINESS OVERVIEW Panasonic, formerly known as Matsushita Electric, makes electronic and electric products for consumer, business and industrial uses. The company operates in five segments: AVC Networks comprises two businesses: Video and Audio Equipment includes plasma and LCD TVs, DVD recorders and players, camcorders, and digital cameras. Information and Communications Equipment includes PCs, optical disc drives, copiers, printers, telephones, and mobile phones. Home Appliances includes refrigerators, air conditioners, washing machines, clothes dryers, and vacuum cleaners. Components and Devices includes semiconductors, general components, electric motors, and batteries. MEW and PanaHome includes lighting fixtures, wiring devices, personal-care and health enhancing products. Other includes electronic-components-mounting machines, industrial robots, welding equipment, and bicycles. INVESTMENT HIGHLIGHTS Renamed company Panasonic (from Matsushita Electric) in order to focus strategic efforts around the flagship brand. Panasonic is a global consumer electronics leader, spanning TVs, DVDs and PCs. Improvement initiatives: (1) dispose of non-core businesses (sold JVC to Kenwood and Sparx, distribution centers to Prologis); (2) speed structural reforms (review manufacturing sites, cut fixed costs); (3) reduce inventories; and (4) curb capex. Valuable real estate. Panasonic s real estate holdings are difficult to value precisely but are likely worth a large percentage of enterprise value. To pay 400+ billion ($4 billion) for majority of Sanyo and spend 100 billion in capex to create energy business, including rechargeable batteries and solar products (deal announced in December; to be financed by cash and debt). Various synergies should boost EBIT by 80 billion in Shares trade at 1.0x tangible book value and 0.3x enterprise value to trailing revenue. INVESTMENT RISKS & CONCERNS Lowered guidance in November and again in February. Management now expects revenue of 7,750 billion, EBIT of 60 billion and a net loss of 380 billion for the current fiscal year. Price declines in flat-panel TV very severe. The company expected 20% decline for FY09 at the beginning of the FY, but now estimates it at 30%. Exposed to yen appreciation, raw materials prices. SELECTED OPERATING DATA FYE March E 1 % of revenue by product category: AVC networks 41% 41% 44% 45% 45% Home appliances 13% 13% 14% 15% 16% Components, devices 12% 12% 13% 12% 12% PEW, PanaHome 18% 19% 19% 20% 21% Other 15% 14% 10% 8% 6% Revenue growth by product category: AVC networks 4% 2% 6% -13% -10% Home appliances 2% 2% 6% -9% -5% Components, devices -2% 4% 2% -21% -11% PEW, PanaHome 1% 8% 2% -9% -5% total revenue 2 20% 2% 3% -32% -29% EBIT margin by segment: AVC networks 5% 6% 6% 0% 1% Home appliances 6% 7% 7% 4% 5% Components, devices 7% 9% 9% 1% 3% PEW, PanaHome 5% 5% 6% 3% 2% Total EBIT margin 5% 5% 6% 1% 1% Selected items as % of revenue: R&D 6% 6% 6% 7% 7% Net income 2% 2% 3% -5% n/a D&A 3% 3% 3% 4% 3% Capex 4% 5% 5% 6% 5% % of revenue by geography: Japan 52% 51% 50% 53% 55% Rest of world 48% 49% 50% 47% 45% ROE 4% 6% 7% -12% n/a Equity to assets 48% 50% 50% 43% n/a shares out (avg) -3% -2% -3% -2% n/a Source: Company information, Manual of Ideas analysis. 1 Based on management guidance provided on May 15, Excludes JVC. Panasonic s stake in JVC decreased from 52% to 37% in August 2007, with JVC now accounted for under the equity method. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / Tang. Book This FY P/E Next FY P/E SNE 27,380 27,210.3x 1.2x n/m 24x PHG 17,740 18,500.5x 4.1x 113x 17x SHCAY 12,280 17,160.3x 1.2x n/m n/m FJTSY 11,180 15,620.2x 2.0x n/a n/a PC 28,230 24,290.3x 1.0x 13x n/a MAJOR HOLDERS Insiders <1% Moxley 8% Master Trust Bank of Japan 5% Japan Trustee Services 4% State Street 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? 1 Proposed Sanyo deal would weaken balance sheet by adding debt. 1 THE BOTTOM LINE Panasonic is a classic value stock due to tangible asset protection, including large real estate assets. The company has a strong brand in consumer electronics, a competitive, capital-intensive business. While Panasonic trades materially below intrinsic value, investors need to scrutinize the company s likely rate of future compounding of intrinsic value. We would need to see the company s prospective returns on equity increase before considering it a compelling long-term investment by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 64 of 87

65 PriceSmart (PSMT) San Diego, CA, Services: Retail (Specialty Non-Apparel) Trading Data Consensus EPS Estimates Valuation Price: $17.51 (as of 6/12/09) Month # of P/E FYE 8/31/ x 52-week range: $ $25.15 Latest Ago Ests P/E FYE 8/31/ x Market value: $518 million This quarter $0.32 $ P/E FYE 8/31/ x Enterprise value: $526 million Next quarter P/E FYE 8/31/ x Shares out: 29.6 million FYE 8/31/ EV / LTM revenue 0.4x Ownership Data FYE 8/31/ EV / LTM EBITDA 8.8x Insider ownership: 46% FYE 8/31/ EV / LTM EBIT 8.8x Insider buys (last six months): 0 LT EPS growth 15.0% 15.0% 1 P / tangible book 2.1x Insider sales (last six months): 13 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 36% Date Actual Estimate LTM EBIT yield 11% # of institutional owners: 211 4/8/09 $0.43 $0.38 LTM pre-tax ROC 29% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 8/31/02 8/31/03 8/31/04 8/31/05 8/31/06 8/31/07 8/31/08 2/28/09 2/29/08 2/28/09 Revenue ,120 1, Gross profit EBIT 14 (14) (7) (5) Net income 11 (32) (33) (64) Diluted EPS 1.55 (3.36) (3.31) (2.19) Cash from ops Capex Free cash flow (33) (10) 12 (5) (8) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed 7% -7% -4% -4% 12% 16% 25% 29% n/m n/m $60 Ten-Year Stock Price Performance and Trading Volume Dynamics $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 65 of 87

66 BUSINESS OVERVIEW PriceSmart owns and operates membership shopping warehouse clubs in Central America and the Caribbean, similar to, but smaller in size, than U.S. warehouse clubs. PriceSmart records four-fifths of sales in foreign currencies. Seasonality is typically weakest in FQ1 ended November 30. MEMBERSHIP WAREHOUSE CLUBS IN OPERATION Warehouse Clubs Own Land Location 2/29/09 2/29/08 and Building Panama Costa Rica Dominican Republic Guatemala El Salvador Honduras Trinidad Aruba Barbados U.S. Virgin Islands 1 1 Jamaica Nicaragua Total Source: Company filings, Manual of Ideas analysis. 1 PriceSmart bought the remaining 10% of the Aruba subsidiary in FY08. 2 PriceSmart bought the remaining 49% of the Nicaragua subsidiary in FY08. 3 The average age of the 25 clubs in operation on February 28 was 92 months. INVESTMENT HIGHLIGHTS Leading membership warehouse club operator in Central American and Caribbean, with 600,000+ members and 25 clubs in operation. Construction is underway on two facilities in Panama and Costa Rica. The latter are expected to open during CY09. Carved out niche in smaller emerging markets that are a lesser focus for Wal-Mart and Costco. Focused on quality and low prices, with 48% of sales from U.S.-sourced merchandise and 52% from local products. The no-frills facilities range from 48K-78K square feet and are located in urban areas. Owns 1.15 million sq. ft of space in warehouse club buildings, with ownership of 18 buildings and the underlying land. The company leases another 410K square feet of warehouse club space. Chairman and CEO Robert Price (66) served as chairman of Price/Costco in He has been chairman of PriceSmart since 1994 and became CEO in Jose Luis Laparte (42) became president in 2004, having previously grown Sam s Club in Mexico. John Heffner (54) became CFO in 2004, after serving as a VP of finance at Qualcomm. Strong balance sheet, with no net debt. Shares trade at 2.1x tangible book value. SELECTED OPERATING DATA FYE August H09 Stores in operation Revenue (mn) $619 $735 $889 $1,120 $640 revenue 14% 19% 21% 26% 18% same store sales 14% 16% 20% 20% 14% headcount -11% -1% 17% 22% n/a % of revenue by type: Warehouse club sales 98% 98% 98% 98% 98% Membership income 2% 2% 2% 1% 1% Other and export 1% 0% 1% 1% 1% % of revenue by segment: Central America 61% 61% 61% 60% 59% Caribbean 39% 39% 39% 40% 41% U.S. 0% 0% 0% 0% 0% Revenue growth by segment: Central America 9% 19% 20% 24% 14% Caribbean 24% 19% 21% 29% 22% EBIT margin by segment: Central America 1% 3% 2% 4% 4% Caribbean -5% 1% 2% 4% 5% Total EBIT margin -1% 2% 3% 4% 5% EBIT / average tangible assets by segment: 1 Central America 4% 8% 7% 14% 13% Caribbean -12% 4% 9% 14% 18% U.S. 1% 3% 10% 6% 20% EBIT / tang. assets -2% 6% 8% 13% 15% shares out (avg) 2 177% 35% 4% 1% 0% Source: Company filings, Manual of Ideas analysis. 1 1H09 EBIT to tangible assets represents annualized figure. 2 The company completed a rights offering in January INVESTMENT RISKS & CONCERNS Operates far-flung international operations, with warehouse clubs situated in multiple jurisdictions, some of which have been susceptible to political unrest, high taxation, tariffs and, and property theft. Controlled by The Price Group, a vehicle of the Price family, which owns 48% of the company. Low-return business. PriceSmart competes in a low-margin, competitive industry, the company s strong position in niche markets notwithstanding. Significant real estate ownership has provided stability but also kept returns on capital low. MAJOR HOLDERS CEO 43% Other insiders 5% Granahan 3% Friess 2% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE PriceSmart owns and operates U.S.-style membership warehouse clubs in underserved Central American and Caribbean markets. The company has reported double-digit same-store sales growth in U.S. dollars for several years, driving EBIT margin from -1% in FY05 to 5% in 1H09. While same-store sales growth decelerated to 4% for the month of May, the positive trend remains intact for now. Shareholder value might be maximized through sale-leaseback of the owned warehouse clubs, as real estate ownership has depressed returns on capital. The balance sheet remains overcapitalized, with no net debt. We do not foresee any real estate sales by the company, making this a modest-downside and modest-upside opportunity by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 66 of 87

67 Sears Holdings (SHLD) Hoffman Estates, IL, Services: Retail (Department & Discount), Member of S&P Trading Data Consensus EPS Estimates Valuation Price: $68.93 (as of 6/12/09) Month # of P/E FYE 1/31/ x 52-week range: $ $ Latest Ago Ests P/E FYE 1/31/ x Market value: $8.3 billion This quarter $0.25 -$ P/E FYE 1/31/ x Enterprise value: $10.2 billion Next quarter P/E FYE 1/31/ x Shares out: million FYE 1/31/ EV / LTM revenue 0.2x Ownership Data FYE 1/31/ EV / LTM EBITDA 7.3x Insider ownership: 59% FYE 1/31/ EV / LTM EBIT 23.2x Insider buys (last six months): 0 LT EPS growth 10.0% 10.0% 2 P / tangible book 1.7x Insider sales (last six months): 10 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 95% Date Actual Estimate LTM EBIT yield 4% # of institutional owners: 619 5/21/09 $0.13 -$0.88 LTM pre-tax ROC 4% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 1/29/03 1/28/04 1/26/05 1/28/06 2/3/07 2/2/08 1/31/09 5/2/09 5/3/08 5/2/09 Revenue 29,352 23,253 19,843 49,455 53,016 50,703 46,770 45,757 11,068 10,055 Gross profit 4,510 5,407 4,901 13,712 15,192 14,065 12,652 12,502 3,023 2,873 EBIT (2,674) (308) 1,821 2,123 2,529 1, (8) 128 Net income (3,219) (628) 1, , (56) 26 Diluted EPS (5.47) (3.12) (0.43) 0.21 Cash from ops 88 1,312 1,068 2,193 1,428 1, ,419 (517) (90) Capex Free cash flow (164) 1, , ,024 (695) (166) Cash & investments 613 2,088 3,435 4,440 3,839 1,622 1,173 1,141 1,413 1,141 Total current assets 6,102 5,811 7,541 15,207 15,267 12,802 11,416 11,993 13,133 11,993 Intangible assets ,132 5,129 5,039 4,675 4,656 5,011 4,656 Total assets 11,238 6,074 8,651 30,573 29,906 27,397 25,342 25,748 27,338 25,748 Short-term debt , Total current liabilities 2,120 1,776 2,081 10,350 9,912 9,562 8,512 9,006 9,971 9,006 Long-term debt 1, ,268 2,843 2,606 2,132 2,114 2,289 2,114 Total liabilities 11,539 3,865 4,182 18,962 17,200 16,730 15,962 16,345 16,768 16,345 Preferred stock Common equity (301) 2,209 4,469 11,611 12,706 10,667 9,380 9,403 10,570 9,403 EBIT/capital employed -32% -6% 81% 32% 23% 14% 3% 4% n/m n/m $250 Ten-Year Stock Price Performance and Trading Volume Dynamics $200 $150 $100 $50 $0 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 67 of 87

68 BUSINESS OVERVIEW Sears Holdings is a broadline retailer with 2,297 full-line and 1,233 specialty stores in the U.S., operating through Kmart and Sears, and 388 full-line and specialty stores in Canada operating through 73%-owned Sears Canada. Seasonality is strongest in Q4, which accounts for 30-33% of revenue. Sears Holdings was formed in 2005 through the merger of Kmart and Sears, each with origins dating to the late 1800s. SELECTED OPERATING DATA FYE January Stores (period end): Kmart 1,416 1,388 1,382 1,368 Sears Domestic full-line Sears Domestic specialty 1,128 1,095 1,150 1,233 Sears Canada full-line Sears Canada specialty Selected growth rates: Stores Kmart n/a -2% 0% -1% Stores Sears Domestic n/a -1% 3% 4% Stores Sears Canada n/a -1% 2% 2% U.S. same store sales -5% -4% -4% -8% Revenue n/m 7% -4% -8% % of revenue by segment: Kmart 39% 35% 34% 35% Sears Domestic 52% 55% 55% 54% Sears Canada 1 9% 10% 11% 11% Gross margin by segment: Kmart 24% 25% 23% 23% Sears Domestic 30% 31% 30% 29% Sears Canada 32% 30% 31% 31% Total gross margin 28% 29% 28% 27% EBIT margin by segment: Kmart 4% 5% 2% 1% Sears Domestic 2 4% 5% 3% 0% Sears Canada 10% 5% 7% 7% Total EBIT margin 4% 5% 3% 1% D&A as % of revenue 2% 2% 2% 2% Capex as % of revenue 1% 1% 1% 1% Equity to assets (tangible) 26% 31% 25% 23% diluted shares out (avg) n/m 1% -7% -14% 1 Includes total revenue of Sears Canada (Sears Holdings owns 73%). 2 Excludes $339 million impairment change in year ended January 31, INVESTMENT HIGHLIGHTS Fourth-largest U.S. broadline retailer, with leadership in home appliances. Owned brands include Kenmore, Craftsman, DieHard, Lands End, and Joe Boxer. The company is also the exclusive retailer of Martha Stewart Everyday products. Controlled by chairman Eddie Lampert, who built a track record at ESL Investments featuring annualized returns of >20% prior to seizing control of Kmart in a bankruptcy reorg process in % of company beneficially owned by Lampert and other insiders, with an additional 12% and 6% held by Fairholme and Legg Mason, respectively. Large real estate ownership, with carrying value not reflective of fair value. Sears owns ~800 stores with ~100 million in owned square footage. Adjusted EBITDA of $359 million in Q ended May 2, up from $208 million a year earlier. Sears Domestic EBITDA margin rose from 1.9% to 4.8%, while Kmart gross margin rose from 0.3% to 1.3%. Repurchased 2.9 million shares at $41 in CQ4; $506 million remained authorized as of January 7. Shares trade at 1.7x tangible book value and 0.2x enterprise value to trailing revenue. INVESTMENT RISKS & CONCERNS Same-store sales fell 8% in FY08, with SSS down 6% at Kmart and down 10% at Sears Domestic (no disclosure of Sears Canada SSS). 1Q09 SSS fell 7% (-2% at Kmart, -12% at Sears Domestic). Market share losses have continued despite attempts at changing store formats, rebranding locations, and improving merchandising. Inventory of $9.5 billion versus tangible book of $4.7 billion as of May 2, exposing shareholders to the risk of obsolescence. Some have accused Sears of reluctance to mark down slow-moving inventory. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / Tang. Book This FY P/E Next FY P/E WMT 194, ,800.6x 4.1x 14x 13x HD 41,140 50,360.7x 2.4x 17x 15x TGT 30,380 47,780.7x 2.2x 14x 13x LOW 29,310 33,240.7x 1.6x 16x 14x COST 20,450 19,020.3x 2.2x 19x 17x BBY 16,050 17,500.4x 8.3x 14x 13x KSS 14,230 15,410.9x 2.1x 18x 16x JCP 6,880 8,250.5x 1.6x 40x 25x SHLD 8,270 10,170.2x 1.7x 31x 36x MAJOR HOLDERS Chairman Eddie Lampert and affiliates 54% Fairholme 12% Legg Mason 6% State Street 4% Clearbridge 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE The value of Sears resides primarily in the owned real estate and chairman Eddie Lampert s ability to allocate capital. Conservative investors may choose to assess the value of the retail business assuming a liquidation scenario. Even if one adopts a pessimistic view of the retail operation, Sears shares appear undervalued. With Lampert at the helm, the real estate assets spanning ~100 million square feet will likely be monetized in a value-maximizing way over time by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 68 of 87

69 Sonae Capital (Lisbon: SONC) Recent market price: 0.69 per share Shares outstanding: 250 million Selected Balance Sheet Data Selected Income Statement Data 2009 by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 69 of 87

70 BUSINESS OVERVIEW Sonae Capital operates in two segments: Sonae Turismo comprises (1) the development, management and sale of high-quality resorts and residential properties; (2) asset management services related to land and other real estate; and (3) tourism operations, including ownership and management of hotels and health clubs. Spred comprises (1) new businesses; (2) joint ventures with specialized partners; and (3) marketable investments. Sonae Capital was spun off from Sonae in December 2007 and went public on Euronext Lisbon in January SONAE TURISMO OVERVIEW OF OPERATIONS (1) Resort and residential development: 7,430 beds in 403mn Troiaresort, hotels, apt s, project peninsula near villas; marina; ( 230mn Lisbon; opened golf; meeting already in Sep facilities invested) Efanor, Greater Porto; construction commenced in February 2008 (2) Asset Management: Existing assets 700 "upmarket" apartments, school, etc. Projects under development construction phase Projects under development design and licensing phase 170mn total investment 54% of apartments and 25% of villas were pre-sold Sales price: 2,640 per sq. meter (~$380 per sq. foot) Boavista complex (next to Hotel Porto Palacio) 130,000 square-meter business park in Maia Residential projects in Lisbon, Porto, Lagos, and Maia Real estate rented out or for sale Several plots of land, which may be developed or sold (3) Tourism Operations: Boavista Five-star, 251-room Hotel Porto Palacio, complex, Porto member of Leading Hotels of the World Aqualuz, Four-star, 163-suite hotel (refurbished in 2007) Lagos Troiaresort 3 four-star hotels, 232 suites (refurb. in 2008) Fitness 10 health clubs with 29,000 members 1 Source: Company, The Manual of Ideas. INVESTMENT HIGHLIGHTS Chairman and CEO Belmiro de Azevedo joined Sonae Capital s former parent in 1965 and built it into one of Portugal s most valuable companies. Refocusing business on (1) development of tourism and residential resorts (Sonae Turismo), and (2) venture capital and JVs (Spread). The company sold its stake in Contacto for 82 million and completed other non-core asset dispositions in VALUATION SNAPSHOT ( in millions, C&W MOI Estimate SONC.LS except per share data) Estimate 1 Low High Price 2 Troia Other real estate Other businesses n/a Enterprise fair value n/a 700 1, Net debt (278) (278) (278) (278) Estimated equity value n/a 422 1, per SONC.LS share n/a Source: Company information, Manual of Ideas analysis. 1 Represents Cushman & Wakefield appraisal as of yearend Shows valuation of Troiaresort implicit in recent market price of Sonae, assuming that Sonae s non-real estate businesses are worth zero and the non- Troia real estate assets are worth one-half of their appraised value (based on Cushman & Wakefield appraisal as of yearend 2008). Troiaresort partially opened for business in September 2008, with cash flow likely to ramp up significantly in the summer of Shares trade at.6x book value. INVESTMENT RISKS & CONCERNS Asset-rich but cash-poor business with nearly 300 million of net debt. While the value of the operating assets and real estate exceeds net debt by an estimated 2x-4x, the debt weighs heavily on the company in the current credit environment. Controlled by CEO. While Belmiro de Azevedo appears to treat shareholders fairly, his goals and timeframe may differ from those of investors. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / Tang. Book This FY P/E Next FY P/E JOE 2,430 2, x 2.5x n/m n/m MTN 1,050 1, x 1.9x 22x 66x IRS x.6x n/a n/a MLP x 3.7x n/m n/m SONC.LS x.6x n/a n/a MAJOR HOLDERS CEO 56% Mohnish Pabrai 7% Other 2%+ holders 9% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Sonae Capital owns a unique portfolio of tourism-related and residential real estate assets in Portugal, situated along the Atlantic coast, in the capital city of Lisbon and in other cities. We estimate the fair value of the enterprise at 700 million to 1.4 billion, implying equity value of per share. With one of Portugal s most successful businessmen at the helm and the recent opening of the Troiaresort, Sonae should be able to ramp up cash flow and reduce debt over time by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 70 of 87

71 additional insight into SONC.LS: SLIDES FROM COMPANY PRESENTATION, APRIL by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 71 of 87

72 additional insight into SONC.LS: SONAE CAPITAL PROPERTY VALUATION SUMMARY The following summary valuation table has been excerpted from the full property valuation report, which is available at by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 72 of 87

73 St. Joe (JOE) Jacksonville, FL, Services: Real Estate Operations Trading Data Consensus EPS Estimates Valuation Price: $26.27 (as of 6/12/09) Month # of P/E FYE 12/31/08 n/m 52-week range: $ $42.49 Latest Ago Ests P/E FYE 12/31/09 n/m Market value: $2.4 billion This quarter -$0.06 -$ P/E FYE 12/31/10 n/m Enterprise value: $2.4 billion Next quarter P/E FYE 12/31/11 n/a Shares out: 92.5 million FYE 12/31/ EV / LTM revenue 14.0x Ownership Data FYE 12/31/ EV / LTM EBITDA -21.5x Insider ownership: 1% FYE 12/31/11 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 0 LT EPS growth 15.0% 15.0% 1 P / tangible book 2.5x Insider sales (last six months): 7 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 95% Date Actual Estimate LTM EBIT yield -5% # of institutional owners: 447 5/5/09 -$0.13 -$0.02 LTM pre-tax ROC n/m Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit EBIT (56) (127) 51 (20) Net income (36) (80) 32 (12) Diluted EPS (0.39) (0.86) 0.40 (0.13) Cash from ops (144) (209) (31) (4) Capex Free cash flow (158) (215) (32) (6) Cash & investments Total current assets Intangible assets Total assets 1,170 1,276 1,404 1,592 1,560 1,264 1,218 1,207 1,632 1,207 Short-term debt Total current liabilities Long-term debt Total liabilities ,103 1, Preferred stock Common equity , EBIT/capital employed n/m n/m n/m n/m n/m >100% n/m n/m n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 73 of 87

74 BUSINESS OVERVIEW St. Joe develops residential, commercial and industrial real estate and sells rural land in Florida. The company also has timber interests. It operates in four segments: Residential Real Estate sells developed home-sites and parcels of entitled and undeveloped land. Commercial R.E. sells developed and undeveloped land. Rural Land sells parcels of the company s timberlands. Forestry produces and sells pine pulpwood and timber. SELECTED OPERATING DATA FYE December % of revenue by type: Real estate sales 90% 87% 82% 74% Rental revenues 1% 1% 1% 1% Timber sales 3% 5% 7% 10% Other revenues 1 6% 7% 10% 16% % of revenue by segment: Residential real estate 78% 68% 43% 27% Commercial real estate 9% 10% 8% 2% Rural land sales 10% 17% 43% 61% Forestry 3% 5% 7% 10% Revenue growth by segment: Residential real estate -10% -36% -55% -56% Commercial real estate -41% -21% -45% -86% Rural land sales 1% 31% 79% 1% Forestry -38% 11% 6% 3% Total revenue growth -14% -27% -28% -30% Pre-tax income margin by segment: Residential real estate 26% 7% -27% -163% Commercial real estate 33% 46% 53% -58% Rural land sales 73% 81% 62% 82% Forestry 18% 22% 1% 14% Other -8% -14% -14% -30% Total pre-tax income margin 23% 10% 5% -24% % of total assets by segment: Residential real estate 42% 54% 71% 67% Commercial real estate 32% 25% 6% 5% Rural land sales 2% 2% 1% 1% Forestry 9% 10% 7% 5% Corporate 14% 10% 15% 21% 1 Primarily revenue from club operations and brokerage fees. INVESTMENT HIGHLIGHTS Largest private landowner in Florida and one of few companies with ability to do large-scale real estate development. St. Joe operates primarily in Northwest Florida and owns 700,000 acres, 44% of which are within ten miles of the Gulf of Mexico. According St. Joe, the cost basis in most of the land is very low. The carrying value of operating and development property is $258 million and $654 million, respectively, as of March 31. * * St. Joe also lists $8 million of investment property and $35 million of total accumulated depreciation, resulting in net real estate of $888 million. Strategy: secure land-use entitlements to reposition timberland for other uses, improve infrastructure, develop community amenities, and undertake strategic land planning (e.g., creative parceling). Exited homebuilding in to focus on development. St. Joe is divesting non-core assets, reducing capex and using strategic partners (e.g., new management agreements for golf courses, two marinas, WaterColor, SummerCamp, WaterSound). Panama City Airport project broke ground in While it has run into resistance from various groups, the airport appears likely to open in ,200 residential units, 14 million commercial square feet in entitlements pipeline as of yearend 2007, in addition to 633 acres zoned for commercial uses. These entitlements are on 45,000 acres. Wm. Britton Greene became CEO in May 2008 after serving as COO. Former CEO Peter Rummell retained his position as chairman. Issued $580 million of equity at $35 per share in 2008, paying off most debt. To meet liquidity needs, St. Joe had previously sold its office buildings for $378 million and >100K acres of rural land to boost liquidity in Dividends were stopped in 4Q07. Shares trade at 2.5x tangible book value. INVESTMENT RISKS & CONCERNS Florida has experienced dramatic slowdown in residential real estate since mid-2005, with market conditions materially impacting St. Joe s sales. Questions regarding land quality. David Einhorn pointed out in 2007 that after taxes and selling expenses, St. Joe might capture only one-half of the gross sales price per acre. Einhorn also argued that some of the land is swamp land and that tourists want to be on the ocean rather than within ten miles of it. Einhorn also argued that investors had failed to discount their assumptions to the present. MAJOR HOLDERS Insiders 3% Fairholme 20% T Rowe 14% Janus 12% Royce 4% Vanguard 4% Third Avenue 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE St. Joe bulls focus on the company s ownership of 700,000 acres of Florida land, implying an attractive enterprise valuation per acre. However, large tracts of St. Joe s land have sold for as little as $2,000 per acre, and it is unclear what the average selling price of the remaining land might be. Northwest Florida is clearly less attractive as a tourist destination than other parts of Florida, and an airport may not change this dynamic. St. Joe is a great inflation hedge, but that may be about it by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 74 of 87

75 additional insight into JOE: SLIDES FROM COMPANY PRESENTATION, MAY 12, by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 75 of 87

76 Target (TGT) Minneapolis, MN, Services: Retail (Department & Discount), Member of S&P Trading Data Consensus EPS Estimates Valuation Price: $40.38 (as of 6/12/09) Month # of P/E FYE 1/31/ x 52-week range: $ $59.55 Latest Ago Ests P/E FYE 1/31/ x Market value: $30.4 billion This quarter $0.64 $ P/E FYE 1/31/ x Enterprise value: $47.8 billion Next quarter P/E FYE 1/31/ x Shares out: million FYE 1/31/ EV / LTM revenue 0.7x Ownership Data FYE 1/31/ EV / LTM EBITDA 7.8x Insider ownership: 0% FYE 1/31/ EV / LTM EBIT 11.2x Insider buys (last six months): 1 LT EPS growth 13.3% 12.9% 9 P / tangible book 2.2x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 87% Date Actual Estimate LTM EBIT yield 9% # of institutional owners: /20/09 $0.69 $0.60 LTM pre-tax ROC 13% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 2/1/03 1/31/04 1/29/05 1/28/06 2/3/07 2/2/08 1/31/09 5/2/09 5/3/08 5/2/09 Revenue 37,410 42,025 46,839 52,620 59,490 63,367 64,948 64,979 14,802 14,833 Gross profit 11,283 12,914 14,657 16,917 18,417 19,601 19,182 19,065 4,630 4,513 EBIT 2,227 2,603 3,031 3,860 4,497 4,625 3,536 4, Net income 1,623 1,809 3,198 2,408 2,787 2,849 2,214 2, Diluted EPS Cash from ops 3,233 3,733 3,259 4,451 4,862 4,125 4,430 4, Capex 3,040 2,738 3,068 3,388 3,928 4,369 3,547 3, Free cash flow , (244) 883 1,552 (210) 459 Cash & investments ,245 1, , , ,371 Total current assets 11,935 12,952 13,922 14,405 14,706 18,906 17,488 17,551 16,759 17,551 Intangible assets Total assets 28,603 31,416 32,293 34,995 37,349 44,560 44,106 44,212 42,830 44,212 Short-term debt ,362 1,964 1,262 1,255 1,863 1,255 Total current liabilities 7,523 8,314 8,220 9,588 11,117 11,782 10,512 10,249 10,959 10,249 Long-term debt 10,186 10,155 9,034 9,119 8,675 15,126 17,490 17,514 15,130 17,514 Total liabilities 19,160 20,284 19,264 20,790 21,716 29,253 30,394 30,093 28,473 30,093 Preferred stock Common equity 9,443 11,132 13,029 14,205 15,633 15,307 13,712 14,119 14,357 14,119 EBIT/capital employed 11% 13% 15% 18% 19% 16% 11% 13% n/m n/m Ten-Year Stock Price Performance and Trading Volume Dynamics $80 $70 $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 76 of 87

77 BUSINESS OVERVIEW Target is a discount retailer of general merchandise and food, operating ~1,700 stores and Target.com. The company also offers branded proprietary and Visa credit cards (sold 47% interest in credit card receivables to JP Morgan in 2Q08). Target employs up to 400,000 people during peak periods. Seasonality: One-third of sales are typically generated in Q4. SELECTED OPERATING DATA FYE February % of revenue by segment: Retail 97% 97% 97% 97% Credit cards 3% 3% 3% 3% Revenue growth by segment and other growth metrics: Retail 12% 13% 6% 2% Credit cards 17% 19% 18% 9% total revenue 12% 13% 7% 2% comparable store sales 6% 5% 3% -3% stores (period end) 7% 7% 7% 6% square footage (period end) 8% 8% 8% 7% % of revenue by type: Consumables and commodities 30% 32% 34% 37% Electronics and entertainment 23% 23% 22% 22% Apparel and accessories 22% 22% 22% 20% Home furnishings and other 25% 23% 22% 21% Selected items as % of revenue: EBIT 8% 9% 8% 7% D&A 3% 3% 3% 3% Capex 6% 7% 7% 5% Equity to assets 41% 42% 34% 31% diluted shares out (avg) -3% -2% -2% -9% Source: Company filings, Manual of Ideas analysis. INVESTMENT HIGHLIGHTS Uniquely positioned as fashionable discounter, enabling it to compete successfully against Wal- Mart s price leadership (by contrast, Kmart has been unable to carve out a defensible competitive niche). Significant real estate value, as Target owns most stores and distribution centers. In November 2008, Target rejected a proposal from Pershing Square to spin off the real estate into a REIT, citing deal complexity and impact on financial flexibility. Bill Ackman expected the real estate, if spun off into a REIT, to trade at a mid teens EBITDA multiple, in line with other inflation-protected securities. * Target veteran Gregg Steinhafel (53) became CEO in May 2008 and chairman in January 2009, replacing Target lifer Bob Ulrich. Steinhafel joined Target s merchandising division in Douglas Scovanner (52) has been CFO since * Access Pershing presentation at Some positive developments evident in Q1. In retail, Target saw strong positive comparable store sales results in our traffic-driving food and commodity categories, and the profitability of our first quarter sales was higher than expected due to outstanding gross margin and expense rate performance. Credit card results were stable, profitable and consistent with our expectations. Repurchased $2.8 billion of stock in FY08, $2.5 billion in FY07, and $900 million in FY06. Shares trade at 2.2x tangible book value, 14x forward earnings and 0.7x EV to trailing revenue. INVESTMENT RISKS & CONCERNS Directly impacted by weak consumer spending. May sales down 2.3% to $4.5 billion, with same store sales down 6.1%, somewhat below management expectations. YTD sales declined 0.2%, while YTD same store sales fell 4.2%. Low-margin, capital-intensive business, with formidable competition from Wal-Mart, Costco, Home Depot, and selected specialty retailers. Potentially inefficient capital and business structure, marrying a competitive retail business with ownership and management of real estate. The company may be better off separating these distinct assets into two entities, as suggested by Pershing. COMPARABLE PUBLIC COMPANY ANALYSIS MV ($mn) EV ($mn) EV / Rev. P / Tang. Book This FY P/E Next FY P/E WMT 194, ,800.6x 4.1x 14x 13x HD 41,140 50,360.7x 2.4x 17x 15x COST 20,450 19,020.3x 2.2x 19x 17x SHLD 8,270 10,170.2x 1.7x 31x 36x JCP 6,880 8,250.5x 1.6x 40x 25x TGT 30,380 47,780.7x 2.2x 14x 13x MAJOR HOLDERS Insiders 1% Cap Re 8% Pershing Square 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Target is a well-positioned discount retailer suffering from weak consumer spending. Recent challenges notwithstanding, Target appears to have carved out a market position it can defend versus industry juggernaut Wal-Mart. Target owns valuable real estate, including the vast majority of its stores, associated land and distribution centers. As a result, the company may be partially seen as an inflation-protected security. Most of the company s debt is fixed-rate, with maturities extending to We like Target s market position and real estate holdings, but do not find the valuation sufficiently compelling by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 77 of 87

78 Tejon Ranch (TRC) Lebec, CA, Services: Real Estate Operations Trading Data Consensus EPS Estimates Valuation Price: $28.75 (as of 6/12/09) Month # of P/E FYE 12/31/ x 52-week range: $ $39.97 Latest Ago Ests P/E FYE 12/31/ x Market value: $489 million This quarter n/a n/a n/a P/E FYE 12/31/ x Enterprise value: $449 million Next quarter n/a n/a n/a P/E FYE 12/31/11 n/a Shares out: 17.0 million FYE 12/31/ EV / LTM revenue 11.6x Ownership Data FYE 12/31/ EV / LTM EBITDA n/a Insider ownership: 34% FYE 12/31/11 n/a n/a n/a EV / LTM EBIT n/m Insider buys (last six months): 1 LT EPS growth 15.0% 15.0% 1 P / tangible book 2.8x Insider sales (last six months): 1 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 75% Date Actual Estimate LTM EBIT yield 0% # of institutional owners: 177 5/5/09 -$0.08 n/a LTM pre-tax ROC 1% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 3/31/09 3/31/08 3/31/09 Revenue Gross profit 3 (1) (0) (1) EBIT (0) (5) (3) (1) (9) (3) 2 1 (3) (3) Net income 0 (3) 0 2 (3) (1) (1) Diluted EPS 0.01 (0.22) (0.06) 0.09 (0.16) (0.06) (0.08) Cash from ops 4 0 (3) (1) Capex Free cash flow (6) (8) (9) (5) (10) 0 (16) (17) (5) (6) Cash & investments Total current assets Intangible assets Total assets Short-term debt Total current liabilities Long-term debt Total liabilities Preferred stock Common equity EBIT/capital employed -1% -8% -4% -1% -13% -4% 2% 1% n/m n/m $70 Ten-Year Stock Price Performance and Trading Volume Dynamics $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 78 of 87

79 BUSINESS OVERVIEW Tejon Ranch owns real estate and operates in three segments: Commercial and industrial real estate sells and leases land and buildings and earns oil and mineral royalties. Resort and residential real estate is currently involved in the land entitlement process for Tejon Mountain Village and the Centennial master planned community. Farming focuses on growing grapes, almonds and pistachios. INVESTMENT HIGHLIGHTS Owns 270,000 acres of land in California, with ~10% available for development. Tejon began acquiring land north of Los Angeles and south of Bakersfield in The land stretches for 16 miles alongside I-5, the main Interstate in California, with 150,000 vehicles passing through daily. Signed conservation deal with environmental groups in June 2008, agreeing to protect up to 240K acres. * Said Michael Winer of Third Avenue: this agreement is key to unlocking the value of Tejon By removing the potential obstacles that have plagued similar development efforts in California, we ll be able to move ahead with the entitlement processes on our current development projects in a much more timely fashion. Focused on three master planned communities: (1) Tejon Industrial Complex (TIC), a 1,450-acre commercial/industrial business park alongside I-5 TIC is entitled and currently being developed; (2) Tejon Mountain Village (TMV), a resort community in the Ranch s high-country, accessible from I-5; the area is 26,400 acres, of which 80+% will remain open space; the plan calls for 3,450 dwelling units along with lodging, recreational and commercial facilities and other amenities; (3) Centennial, a 12,000-acre sustainable new town at the confluence of I-5 and Highway 138 in the Antelope Valley; Centennial will encompass 23,000 housing units; commercial space, and amenities. Each of the communities will be built in phases, with development to take place over years. Identified 16,000 acres where development could one day occur, but we haven t developed any specific plans beyond TIC, TMV and Centennial. Robert Stine (62) has served as CEO since He was previously at Collins, a San Diego real estate developer, where he became CEO in * Of the 240,000 acres that may be conserved, 62,000 acres are subject to purchase by certain environmental groups under an option granted as part of the conservation deal. The price will be set by a state appraisal process. SELECTED OPERATING DATA FYE December Q09 Revenue ($mn) Change (y-y) 26% 8% 14% 24% -26% % of revenue by segment: Commercial/indus. R.E. 50% 56% 52% 68% 96% Resort/residential R.E. 1 0% 0% 0% 0% 0% Farming 2 50% 44% 48% 32% 4% Revenue growth by segment: Commercial/indus. R.E. 28% 23% 6% 61% -11% Farming 2 24% -7% 24% -16% -86% Segment profit (loss) ($mn): Commercial/indus. R.E Resort/residential R.E. (2) (3) (4) (5) (1) Farming (0) Selected income statement and cash flow items ($mn): EBIT (1) (9) (3) 1 (3) Equity in JV earnings (0) Net income 2 (3) 7 4 (1) D&A Capex Assets by segment (period end) ($mn): Commercial/indus. R.E n/a Resort/residential R.E n/a Farming n/a Corporate n/a shares out (avg) 6% 1% 1% 1% 0% Source: Company filings, Manual of Ideas analysis. 1 Segment does not produce revenue, as it is engaged in entitlement process. 2 Revenue down 86% in Q1 due primarily to poor almond sales. Strong balance sheet, with $38 million of net cash and revolving borrowing capacity of $30 million. Shares trade at 2.8x tangible book value. INVESTMENT RISKS & CONCERNS Entitlement process typically takes many years, slowed by resistance from environmental groups. This risk was reduced by an agreement in Ultimate land development costs unclear, making it impossible to predict returns on invested capital. Major FCF from leasing or sale of properties remains years away, reducing current equity value. MAJOR HOLDERS CEO Stine 2% Other insiders 5% Third Avenue 29% Wesley 13 % Fidelity 4% Barclays 3% Vanguard 3% RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Tejon Ranch owns the largest contiguous expanse of private land in California, situated between L.A. and Bakersfield. The company is focused on three master planned communities, with two still in the entitlement process. Tejon overcame a major hurdle in June 2008 when it signed a conservation agreement with five environmental groups. Nonetheless, full development of most of the developable land remains years and potentially decades away, making it difficult to gauge present value. That said, the company has a clean balance sheet, providing downside protection for shareholders by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 79 of 87

80 Vail Resorts (MTN) Broomfield, CO, Services: Recreational Activities Trading Data Consensus EPS Estimates Valuation Price: $28.92 (as of 6/12/09) Month # of P/E FYE 7/31/ x 52-week range: $ $52.00 Latest Ago Ests P/E FYE 7/31/ x Market value: $1.1 billion This quarter -$1.09 -$ P/E FYE 7/31/ x Enterprise value: $1.4 billion Next quarter P/E FYE 7/31/ x Shares out: 36.4 million FYE 7/31/ EV / LTM revenue 1.2x Ownership Data FYE 7/31/ EV / LTM EBITDA 5.5x Insider ownership: 2% FYE 7/31/ EV / LTM EBIT 9.3x Insider buys (last six months): 0 LT EPS growth -17.2% -17.2% 3 P / tangible book 1.9x Insider sales (last six months): 0 Latest Quarterly EPS Surprise Greenblatt Criteria Institutional ownership: 95% Date Actual Estimate LTM EBIT yield 11% # of institutional owners: 318 6/4/09 $1.68 $1.56 LTM pre-tax ROC 17% Operating Performance and Financial Position ($ millions, except Fiscal Years Ended LTME FQE FQE per share data) 7/31/02 7/31/03 7/31/04 7/31/05 7/31/06 7/31/07 7/31/08 4/30/09 4/30/08 4/30/09 Revenue ,152 1, Gross profit EBIT Net income 7 (9) (6) Diluted EPS 0.25 (0.24) (0.17) Cash from ops Capex Free cash flow (25) (1) Cash & investments Total current assets Intangible assets Total assets 1,449 1,455 1,534 1,526 1,688 1,909 1,926 1,941 2,121 1,941 Short-term debt Total current liabilities Long-term debt Total liabilities , ,045 1,195 1,197 1,132 1,325 1,132 Preferred stock Common equity EBIT/capital employed 6% 4% 9% 11% 14% 17% 23% 17% n/m n/m $70 Ten-Year Stock Price Performance and Trading Volume Dynamics $60 $50 $40 $30 $20 $10 $0 May 00 May 01 May 02 May 03 May 04 May 05 May 06 May 07 May 08 May by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 80 of 87

81 BUSINESS OVERVIEW Vail Resorts operates in three segments: Mountain owns and operates five ski resorts as well as ski schools, 100+ restaurants and 140+ retail/rental locations. Total acreage at the five resorts exceeds 17,000 acres. Lodging owns and/or manages a collection of luxury hotels, condominiums and golf courses. Real Estate owns and develops real estate in and around the company s resort communities. Vail Resorts Mountain segment has roots dating back to the late 1950s when Pete Seibert and Earl Eaton first climbed Vail Mountain. Vail Resorts acquired another four worldclass ski resorts from The company went public in 1997 and established the Lodging segment in 2001 with the purchase of RockResorts, which dates back to INVESTMENT HIGHLIGHTS Owns five world-class ski resorts: Breckenridge, Vail, Keystone, Heavenly, and Beaver Creek. The Lodging segment manages thirteen RockResorts hotels (five are also owned), twelve other hotels (five owned), and six golf courses (five owned). 41% share of Colorado ski market and 13% share in California/Nevada. Vail s ski resorts registered six million visits during the 2007/08 season, or 10% of U.S. skier visits. Mountain ETP and Lodging RevPAR were $49 and $106 in FY08, respectively. Barriers to entry for new ski areas include limited supply of attractive land, difficulty in obtaining building permits, and large capital needs to fund construction. Virtually no new major ski resorts have been built in North America in 25 years. Robert Katz (41) has served as a director since 1996 and was appointed CEO in He was previously with Apollo Management. Katz recently announced a 10% reduction in executive salaries and will personally not take any salary for a 12- month period in an effort to preserve as many jobs as possible during the economic downturn. Relatively low debt level at $492 million or less than 2x trailing EBITDA. Most debt matures in 2013 or thereafter. The company also has $171 million in cash. The company has land carried at $263 million, buildings and improvements of $748 million, and real estate held for sale of $277 million. Bought back $15 million of stock as of April million shares remain authorized for repurchase. Shares trade at 1.9x tangible book value. MAJOR HOLDERS CEO Katz 1% Other insiders 1% Ralcorp 17% Baron 16% Marsico 14% Janus 12% Columbia 8% SELECTED OPERATING DATA FYE July YTD 4/30/09 % of revenue by segment: Mountain 67% 74% 71% 60% 66% Lodging 24% 19% 17% 15% 15% Real Estate 9% 7% 12% 26% 19% Revenue growth by segment: Mountain 8% 15% 7% 3% -11% Lodging 9% -21% 4% 5% 8% Real Estate 61% -14% 80% 163% 48% Total revenue 11% 4% 12% 22% -1% Headcount -3% 1% -3% 8% n/a EBITDA margin by segment: Mountain 28% 29% 31% 32% 34% Lodging 8% 8% 11% 6% 7% Real Estate 20% 11% -2% 15% 24% Growth in selected operating metrics: Mountain skier visits 1 5% 6% -1% 0% n/a Mountain ETP 2 4% 6% 10% 6% n/a Lodging ADR 3 4% 3% 7% 6% n/a Lodging RevPAR 4 12% 2% 8% 7% n/a Selected items as a % of total revenue: EBIT 11% 13% 14% 15% 19% D&A 11% 10% 9% 8% 9% Capex 10% 11% 13% 13% 10% shares out (avg) 1% 6% 3% -1% -5% Source: Company filings, Manual of Ideas analysis. 1 Represents a person utilizing a ticket or pass to access a mountain resort for any part of one day, and includes both paid and complimentary access. 2 Lift ticket revenue divided by total skier visits. 3 Total room revenue divided by the number of occupied rooms. 4 Total room revenue divided by the number of rooms available to guests. INVESTMENT RISKS & CONCERNS Resort EBITDA fell 20% to $207 million YTD (includes mountain and lodging segments). Lodging same store RevPAR fell 19% and ADR declined 7% in FQ3 (see table footnotes for term definitions). Guiding for FY09 EBITDA of $ million, down 21-26% y-y; net income of $41-51 million, a decline of 50-60%; and capex of $50-60 million, with maintenance capex of $32-37 million. Seasonal business, with ski season beginning in mid-november and running through mid-april. FQ2 and FQ3 typically account for 80% of revenue. High fixed costs. A decline in skier visits may cause earnings to fall disproportionately. PP&E has been depreciating at ~$90 million per year. RATINGS VALUE Intrinsic value materially higher than market value? MANAGEMENT Capable and properly incentivized? FINANCIAL STRENGTH Solid balance sheet? MOAT Able to sustain high returns on invested capital? EARNINGS MOMENTUM Fundamentals improving? MACRO Poised to benefit from economic and secular trends? EXPLOSIVENESS 5%+ probability of 5x upside in one year? THE BOTTOM LINE Vail Resorts owns five ski resorts and a portfolio of luxury hotels, condominiums and golf courses. The company has ski market share of 41% share in Colorado and 13% in California/Nevada. With no significant debt maturities until 2014 and net debt equal to 1.3x LTM EBITDA, the company should be able to weather a prolonged downturn. However, at 2x tangible book value and 7x 2009E EBITDA, the shares may not be sufficiently cheap to warrant serious consideration by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 81 of 87

82 additional insight into MTN: SLIDES FROM COMPANY PRESENTATION, MARCH by BeyondProxy LLC. All rights reserved. June 19, 2009 Page 82 of 87