Bank of America Investment Banking Pitch Book
Preliminary Discounted Cash Flow Analysis
Unlevered Free Cash Flows
Total NO
Capitalized G&A
+Net Capitalized RE Taxes and Insurance and TIF Tax Revenue
Increase in Net Working Capital
Capital Expenditures
Other Costs
Capitalized IT
Proceeds from Dispositions
+JV Management Fees
Unlevered Free Cash Flows
Discount
Rate
8.25%
8.50%
8.75%
Discount
Rate
19
8.75%
Discounted
Cash Flows
$641
L
Minority
Interest
PV of Terminal Value
Based on Perpetuity Growth
1.50% 1.75% 2.00%
$2.198
2.095
1.999
A
$2,288 $2.385
2.178
2,267
2.076
2.158
Total Implied
Equity Value
2016E
$215
(1)
(161)
(1)
146
$155
2017E
$239
(27)
1
(132)
(1)
(1)
1
$65
1.50%
$2,839
2,732
G
FD Shares
Outstanding
2018E
58.0
58.0
58.0
$269
(14)
2
(86)
(1)
(4)
$143
C
Total implied
Enterprise Value
1.75%
$2.929
2019E
$280
3
(26)
(0)
1
$214
2.00%
$3,027
2,905
Preliminary, Subject to Further Review and Revision
Bank of America
Merrill Lynch
2020E
1.50%
$18.75
16.75
15.25
$290
(14)
3
(26)
(1)
(0)
1
$224
Normalized
$290
(529)
(514)
Implied Equity Value
per Diluted Share
1.75%
$20.25
18.25
16.50
(30)
(0)
1
$217
D
Net Debt
+ Pref
(51,740)
(1,740)
(1,740)
Discount Rate
2.00%
$22.00
19.75
18.00
Discount Rate
Implied Core EBITDA Multiple
Perpetuity Growth
1.50%
8.25%
12.0x
8.50% 11.6x
1750
8.50%
11.6
Terminal Value as % of Total Value
1.50%
1.75%
$1,085 $1,175 $1,272
978
1,150
879
955
1,037
A Assumes $71 million of debt treated as cash proceeds along with estimated cash proceeds of $65 million to account for full transaction value of joint venture structuring.
Perpetulty Growth
2.00%
13.1x
1.50% 1.75% 2.00%
77.4%
76.7%
75.9%
77.4% 78.1%
77.3%
Source: RHO Projections
Note: Figures in millions, except per share amounts Present value date of January 1, 2016 based on mid-year convention implied equity value per diluted share rounded to nearest 50.25 Stock-based compensation treated as cash expe
(4) Based on 2020E RHO Projections normalized to reflectending of TIF sole box revenue and other co
(2)
Normalized year value assumes each property undergoes 51.8 million refresh every 15 years.
(3)
Based on 2021ERHO Projections of $271 million for Core EBITDA (Core NOI
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