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Bill Ackman Sees Real Estate Turnaround by 2012; Buys More ALEX

May 19, 2011 | About:
Holly LaFon

Holly LaFon

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In the first quarter of 2011, David Tepper acquired a large quantity of shares of home builders. Bill Ackman expressed his optimism for the resurrection of real estate vocally, and has large positions in a few real estate-related companies. “I think the only thing missing is confidence. All you need is a relatively small turn,” he said of the U.S. real estate market at a recent lunch hosted by Davies Ward Phillips & Vineberg, The Globe and Mail reports. He also said he believed increased rental rates would cause people to start buying houses again, and predicts a recovery will begin by 2012.

In November 2010, Ackman gave a presentation on why the housing sector was destined for an upswing. As of yet he does not own any home builder stock.

In the first quarter, Ackman increased his position in Alexander & Baldwin Inc. (ALEX) 3,389,942 shares; he now owns 3,561,943 shares. The company owns over 87,000 acres of land in the Hawaiian islands. A subsidiary of the company, A&B Properties, develops the company’s raw lands and re-invests proceeds into new properties – primarily commercial – creating value for shareholders.

In the first quarter of 2011, Alexander & Baldwin reported net income of $5.2 million, declined from $17.3 million in the first quarter of 2010. The company’s first quarter earnings beat the outlook the company issued on March 18 mainly due to property sales, it said in a statement. “Performance from our real estate and agribusiness segments was, however, better than anticipated, helping us achieve overall profitability for the quarter,” A&B’s CEO Stanley Kuriyama said.

Ackman at one point had plans to found a real estate investment trust out of the land Target (TGT) owned around its stores. The board rejected his plan in 2009, and in the first quarter of 2011 he sold out of his position.


Rating: 2.5/5 (11 votes)

Comments

kfh227
Kfh227 premium member - 2 years ago
USG is at $14 and change right now! just saying.
paulwitt
Paulwitt premium member - 2 years ago
I'm buying hotel stocks (PEB, HPP, CLDT). Also Lumber Liquidators (they're opening new stores). Don't own USG but it looks like a good cyclical (repair, remodel, new construction)

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