2012 Marcato Brookfield

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Perspectives on Book Value
Mick McGuire, Marcato Capital Management
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PerspectivesonBookValue:
FindingHiddenValueontheBalanceSheet
October2012
Disclosures
This document is confidential and intended solely for the addressee and may not be published or distributed without the express
written consent of Marcato Capital Management, LLC (Marcato). This document is not intended for public use or distribution.
This document does not constitute either an offer to sell or a solicitation of an offer to buy any interest in any fund associated
with Marcato. Any such offer would only be made at the time a qualified offeree receives the funds confidential offering
memorandum and related subscription documentation (together, the Offering Documents). To the extent, therefore, there is
any inconsistency between this document and the Offering Documents, the Offering Documents govern in all respects.
Figures provided herein are rounded as applicable. Information contained herein is believed to be accurate and/or derived
from sources which Marcato believes to be reliable; however Marcato disclaims any and all liability as to the completeness or
accuracy of the information contained herein and for any omissions of material facts.
Securities or investment ideas are presented to illustrate Marcatos typical research process and not to suggest or show
profitability of any or all transactions. There should be no assumption that any specific portfolio securities identified and
described herein were or will be profitable. Marcato may, at any time, reevaluate its holdings in any such positions.
<1>
Conservative Accounting Rules For Property Create Opportunity
Under GAAP Codification Section 360, land is recorded at cost and is then
subject to an ongoing recoverability/impairment test. In most all cases, the
carrying value of the land at any point in time is the lower of cost or fair
value.
This can lead to major understatements when the market value of a

property is well above its original cost, and often occurs when the property
in question is very old.
Source: FASB.
<2>
Undervalued Land On The Balance Sheet
I. Alexander & Baldwin (ALEX)

II. Gencorp (GY)
III. Brookfield Residential Properties (BRP)
<3>
I. Alexander & Baldwin (ALEX)
<4>
Alexander & Baldwin, Inc.

Alexander & Baldwin is one of the most important companies in
Hawaiis history and present-day economy
Founded as a sugar plantation in 1870 in Hawaii, Alexander &
Baldwin owns real estate businesses
7.9 million square feet of developed GLA on Hawaii and the U.S.
mainland
Ticker: ALEX
Recent Stock Price: $30 (1)
Real estate development pipeline on Hawaii comprising ~88,000 acres
Capitalization:
Equity Market Value: $1.3 billion
Total Enterprise Value: $1.5 billion
Operating Statistics (2):

2011 Revenue: $272 million
2011 EBITDA: $86 million
Source: Company documents

(1) All financials in this presentation assume a stock price of $30
(2) Excludes discontinued operations
<5>
A&B Properties, Inc.

7.9m of commercial GLA on Hawaii and the U.S. mainland
Acquired by reinvesting proceeds of property sales over time through taxdeferred 1031 exchanges
Diversified across office, retail, industrial
Currently 92% leased and generating income
Development pipeline in Hawaii

Resort and residential properties in different stages of development
Fully owned projects comprising ~620 entitled acres
JV projects requiring minimal cash contributions, comprising over 1,000
acres
Ownership of additional hidden land assets

>75,000 additional acres on Maui and Kauai for potential future
development
Extremely low basis given acquisition circa ~1870
Currently being farmed as a holding strategy
<6>
ALEX: Balance Sheet Snapshot
Completed development
properties for sale
JV development projects
Fully owned development

projects
Retained investment properties

(ie, leased CRE)
<7>
An NAV Calculation Will Include All of ALEXs Real Estate Assets
A bottoms-up analysis
requires an assessment of
three different categories
of assets
Leased, income-generating commercial real

estate portfolio
Easy to Value
Hawaii
Mainland
Development pipeline in Hawaii

Fully owned projects
JVs
Additional land assets

Low basis land for potential future development,
currently being farmed as a holding strategy,
comprising roughly 20% of Maui and 15% of Kauai
Harder to Value
<8>
Leased Commercial Properties: Hawaii

We believe ALEXs leased commercial real estate on Hawaii is worth over $400m
Industrial
Occupancy
2009
2010
96%
86%
2011
89%
Recent
Ow ned
Market
Sq. Ft. Price / Sq Ft.
564,800
$100
Office
90%
91%
92%
185,800
150
28
Retail
96%
95%
92%
694,980
400
278
11,770
5,000
59
Unimproved Land (1)

Total Value
2011 NOI
Blended cap rate
Value
Value
$56
$421
$26.5
6.5%
$408
$26.5
6.0%
$442
Source: Company documents, Marcato estimates

(1) Represents land leased to third parties and included in reported
NOI. Numbers represent acres and $ / acre
<9>
Leased Commercial Properties: Mainland

We believe ALEXs leased commercial real estate on the mainland is worth close to $500m today,
and could be worth more as rents and occupancy improve from cyclically depressed levels
Industrial
Occupancy
2009
2010
82%
83%
2011
95%
Recent
Ow ned
Market
Sq. Ft. Price / Sq Ft.
4,466,800
$50
Office
86%
84%
84%
1,267,800
150
190
Retail
90%
91%
88%
726,000
175
127
28
Unimproved Land
(1)
Total Value
Value
$223
$541
2011 NOI
Blended cap rate
Value
$34.3
7.5%
$457
$34.3
6.5%
$528

(1) Numbers represent acres and $ / acre
< 10 >
ALEX: Valuation
Balance Sheet
Value
Com m ercial RE Portfolio
Haw aii
Mainland
Total
Property Under Developm ent
Wholly Ow ned
JV
Total
$819
Market
Value Per Share
$425
493
$917
$10.02
11.62
$21.63
(120)
(224)
$573
(2.83)
(5.28)
$13.52
$30.00
(54.9%)
Land
Less: Corporate (1)
Less: Debt
Equity Value
Current Stock Price
% Premium / (Discount) to Current
0
(224)

(1) Estimated at $15m of pre-tax expenses per year, capitalized at 8x
< 11 >
Map of Important Development Projects
Maui
Kauai
Maui Business
Park II
Haliimaile
Wailea
Kukuiula

< 12 >
Fully Owned Development Projects: Wailea
Wailea resort originally developed by ALEX and sold to

Shinwa Golf Group in 1989
270 fully zoned, undeveloped acres at Wailea reacquired
in 2003 for $67m
Subsequently sold 70 acres in 2004 for $70m
Contributed 25 acres to Kai Malu JV with Armstrong Builders
Remaining acreage in various stages of development

Planned for ~800 homes
< 13 >
Fully Owned Development Projects: Maui Business Park II
Phase II of ALEXs Maui Business Park comprises 179 acres of

industrial zoned lands in central Kahului, close to the airport
and harbor
Final zoning approval received in 2008 and infrastructure
work completed in 2011
Planned for 160, -acre lots
Sales and leasing have begun
4-acre anchor parcel sold to Costco in January 2012 at ~$1.5m
/ acre
< 14 >
Fully Owned Development Projects: Waihonua at Kewalo
2-acre urban Honolulu parcel acquired by ALEX in 2Q10

for highrise condominium development
Extremely well located in the Ala Moana corridor near
shopping, restaurants, and beaches
Successfully navigated complex permitting process
Limited new product in supply-constrained market
341 units planned on 43 floors

One-, two-, and three-bedroom residences averaging 1,000 square feet
257 units sold as of August 2012 (236 binding sales averaging >$700 / sq.
ft.)
< 15 >
Fully Owned Development Properties: DCFs
Fully ow ned Developm ent Properties

Wailea - under development (ex Kai Malu JV)
Bluffs at Wailea
Ridge at Wailea
Wailea MF-7
Wailea - future developments
Wailea SF-8
Wailea MF-10 (Residential)
Wailea MF-10 (Commercial)
Wailea MF-6
Wailea MF-16
Wailea - Other
Wailea - Subtotal
Haliimaile
Kane Street (Residential)
Kane Street (Commercial)
Kahului Tow n Center (Residential)
Kahului Tow n Center (Commercial)
Maui Business Park II
Port Allen Residential - Kai Olino
Keola Lai (mostly sold)
Waihonua - Honolulu
Brydesw ood
Total Fully Ow ned Developm ent
Entitled
Acres
27
7
7
13
140
13
14
23
7
83
63
4
19
179
4
3
2
Value
per Acre
Units /
Sq. Ft
Avg.
Sale Price
Sales
Proceeds
Costs to
Com plete
Net
Proceeds
Tax
Basis
Tax
Years to
Rate Com plete
Discount
Rate
NPV
12
9
75
$1.5
1.5
1.3
$18.0
13.5
97.5
$0.0
0.0
84.0
$18.0
13.5
13.5
$9.0
8.0
90.0
35%
35%
35%
0
0
3
15%
15%
15%
$14.9
11.6
8.3
90
45
65,000
60
20
0.3
1.3
350.0
1.3
1.3
27.0
58.5
22.8
78.0
26.0
25.0
40.0
16.0
14.0
7.0
2.0
18.5
6.8
64.0
19.0
25.0
40.0
20.0
20.0
10.0
35%
35%
35%
35%
35%
5
5
5
2
3
15%
15%
15%
15%
15%
170
103
20,000
440
240,000
160
75
10
341
24
0.4
0.5
300.0
0.5
300.0
1.0
0.5
0.6
0.7
1.8
68.0
51.5
6.0
220.0
72.0
160.0
37.5
6.0
238.7
43.2
34.0
32.0
2.0
200.0
53.0
82.0
19.0
0.0
185.0
15.0
34.0
19.5
4.0
20.0
19.0
78.0
18.5
6.0
53.7
28.2
35.0
33.0
2.0
202.0
53.0
95.0
30.0
5.1
206.0
17.0
35%
35%
35%
35%
35%
35%
35%
35%
35%
35%
5
3
3
4
4
2
4
0
3
3
15%
15%
15%
15%
15%
15%
15%
15%
15%
15%
0.9
8.1
2.9
35.5
10.2
49.8
$142.0
15.1
9.9
1.7
9.8
7.1
44.9
11.3
5.7
32.2
14.5
$294
0.6
441
We note that in 2006, Goldman Sachs performed DCFs of Wailea and

Haliimaile, valuing the projects at $144m and $186m, respectively. (1)
Source: ALEX Real Estate Supplements, Marcato estimates

(1) Goldman Sachs Initiation Report, January 11, 2006
< 16 >
Fully Owned Development Projects
We believe ALEXs fully

owned development
projects are worth
roughly ~$294 million
Wailea
Maui Business Park II
Waihonua - Honolulu
Kahului Tow n Center
Haliimaile
Brydesw ood
Kane Street
Port Allen Residential
Keola Lai
Total Fully Ow ned Developm ent
Entitled
Acres
167
179
2
19
63
4
4
3
441
Value
$142
45
32
17
15
14
12
11
6
$294
< 17 >
JV Development Projects: Kukuiula
77% interest in JV with DMB Associates

1,000 acre master planned community on Kauai
Up to 1,500 units planned
High end resort / residential with price points $1 - $4 million / lot
Amenities include golf course, spa, country club, water access, trails, parks
79,000 sq. ft. commercial retail center opened for business in August 2009
and construction is complete on 178 lots
Construction of all amenities completed
88 lots sold to date
< 18 >
JV Development Properties: DCFs
JV Developm ent Properties

Kukui'ula
Kukui'ula Village
Kai Malu at Wailea (mostly sold)
Ka Milo
Palmdale Trade & Commerce Center
Crossroads Plaza
Bakersfield - Panama Grove
Santa Barbara Ranch
Total JVs
Koloa, Kauai
Koloa, Kauai
Wailea, Maui
Kona, Big Island
Palmdale, CA
Valencia, CA
Bakersfield, CA
Santa Barbara, CA
Acres
1,000
10
25
31
18
7
57
22
1,170
Units /
Sq. Ft
1,100
83,200
12
113
315,000
56,000
575,000
Avg.
Sale Price
$1.5
800.0
1.3
1.2
150.0
150.0
150.0
Sales
Proceeds
$1,650.0
Costs to
Com plete
$412.0
Net
Proceeds
$1,238.0
Tax
Basis
$810.0
Tax
Years to
Rate Com plete
35%
10
Discount
Rate
15%
15.6
135.6
47.3
0.0
113.0
41.0
15.6
22.6
6.3
10.0
120.0
45.0
35%
35%
35%
0
4
5
15%
15%
15%
86.3
79.0
7.3
90.0
35%
15%
%
Ow ned
77%
60%
50%
50%
50%
50%
50%
NPV
$343.7
39.9
6.8
6.1
1.4
4.2
2.1
0.0
$404
We note that in 2006, Goldman Sachs performed a DCF of Kukuiula,

valuing the project at $288m, before ALEX increased its project
ownership from 60% to 77%. (1)

(1) Goldman Sachs Initiation Report, January 11, 2006
< 19 >
JV Development Projects
We believe ALEXs JV
development projects
are conservatively worth
roughly ~$404 million
Kukui'ula
Kukui'ula Village
Kai Malu at Wailea (mostly sold)
Other
Total JV Developm ent
Acres
1,000
10
25
135
1,170
Value
$344
40
7
14
$404
< 20 >
ALEX: Valuation
Balance Sheet
Value
Haw aii
Mainland
Total
Wholly Ow ned
JV
Total
Market
Value Per Share
$819
$425
493
$917
$10.02
11.62
$21.63
$159
291
$449
$294
404
$698
$6.93
9.53
$16.46
0
(224)
(120)
(224)
$1,271
(2.83)
(5.28)
$29.99
$30.00
(0.0%)
Land
Less: Corporate (1)
Less: Debt
Equity Value
Current Stock Price
% Premium to Current

< 21 >
Additional Legacy Land Assets Provide Hidden Value

ALEX owns 20% of the island of Maui and 15% of the island of Kauai, and a higher
proportion of usable land
This land was acquired circa 1870 and is carried on ALEXs books at $150 / acre (~$13m)
< 22 >
Recent ALEX Land Sales Average $27,000 / Acre
ALEX Ag Land Sales Transactions - Last 5 Years

Avg Price
High
Total Acres Sold Per Acre
0 - 5 Acres
10
$107,300
$175,000
5 - 20 Acres
67
61,300
167,800
20 - 100 Acres
260
25,900
40,700
100+ Acres
649
22,800
29,000
Total
986
$27,100
$175,000
Low
$11,500
24,300
14,000
11,300
$11,300

< 23 >
Recent Comparable Land Sales Average >$30,000 / Acre

Maui Ag Land Sale Com ps - Last 5 Years
5 - 20 Acres
20 - 100 Acres
100+ Acres
Total
# of
Total
Transactions Acres Sold
40
350
17
630
8
2,900
65
3,880
Avg
Acres Per
Transaction
9
37
361
60
Avg Price
Per Acre
$95,600
51,700
18,300
$30,700
High
$295,000
197,800
50,100
$295,000
Low
$24,300
8,300
11,300
$8,300
Avg
Acres Per
Transaction
9
23
346
52
Avg Price
Per Acre
$111,000
68,700
17,200
$32,100
High
$297,700
86,400
35,100
$297,700
Low
$25,000
27,700
3,700
$3,700
Kauai Ag Land Sale Com ps - Last 5 Years
5 - 20 Acres
20 - 100 Acres
100+ Acres
Total
# of
Total
Transactions Acres Sold
32
300
3
70
5
1,730
40
2,100

< 24 >
Comparable Land Sales: Maui Land & Pineapple Company

In recent years, Maui Land & Pineapple Company (NYSE: MLP), formed in the 1960s from ALEX
landholdings in west Maui, has sold agricultural land at an average of over $20,000 / acre
MLPs precedent land sales provide additional data points for valuing ALEXs excess land:
Maui Land & Pineapple Precedent Land Sales

Date
Acres
$ / Acre Description
Jan-12
89
$16,854 Upcountry Maui (1)
Mar-10
128
13,281 Upcountry Maui (1)
2008
111
39,460 Upcountry Maui
2007
683
2006
2,200
2005
640
44,063 Upcountry Maui (2)
Q1-2002
9
Total
3,860
$23,267
Source: Maui Land & Pineapple Company documents

(1) We believe these were forced sales, as MLP is in financial distress
(2) Consideration included 1 acre in west Maui valued at $350k
< 25 >
Lease Income: Cap Rate Valuation

We note that, in recent years, ALEX has leased some of its agricultural land to third parties, and
earned $333 - $584 of NOI per acre
Valuing this acreage on a cap rate basis supports a valuation of ~$6,700 per acre for ALEXs
agricultural landholdings
NOI from leasing unimproved land in Haw aii

Unimproved land leased to third parties in Haw aii
Market rent / avg leased acres of ag land
Assumed "Normalized" Market Rent / Acre
Cap Rate
Im plied Value / Acre of Ag Land
2007
$8.5
10,183
2008
$6.2
11,054
$584
2009
$4.6
10,220
$432
2010
$3.8
9,260
$390
2011
$3.5
11,770
$333
Average
$435
$435
6.5%
$6,690

< 26 >
Additional Land Value

Value of Ag Land
Methodology
Lease Value
Maui Land & Pineapple Value
Historical ALEX Sales
Land Comps
Adjusted
Value
Value
Per Acre Per Acre (1)
$6,690
$6,690
23,267
7,586
27,100
8,836
30,700
10,010
Acres
46,005
46,005
46,005
46,005
Total
Value
$308
349
407
461
Value
Per Acre
$675,000
0
Acres
177
29,170
Total
Value
$119
0
EBITDA
$34
Multiple
4.5x
Value
$154
(2)
Plus: Other Land
Additional Entitled Land

Conservation Land
(3)
Total Land Value

Low
Per Share
High
Per Share
$582
$13.72
$734
$17.32
Plus: Value of Agricultural Operations

LTM Agribusiness EBITDA

(1) Adjusted for taxes and time value of money
(2) Represents all of ALEXs agricultural land, excluding the 11,770 agricultural acres leased to third parties in 2011, the
income from which was included in the NOI of the Hawaiian leased commercial properties
(3) Includes entitled acreage not included in the 441 acres of fully owned development projects for which we
performed DCFs
< 27 >
ALEX: Valuation
Balance Sheet
Value
Haw aii
Mainland
Total
Wholly Ow ned
JV
Total
Land (1)
Less: Corporate (2)
Less: Debt
Equity Value
Current Stock Price
Market Value
Low
High
Per Share
Low
High
$819
$425
493
$917
$425
493
$917
$10.02
11.62
$21.63
$10.02
11.62
$21.63
$159
291
$449
$294
404
$698
$294
404
$698
$6.93
9.53
$16.46
$6.93
9.53
$16.46
$13
$582
$734
$13.72
$17.32
0
(224)
(120)
(120)
(224)
(224)
$1,853 $2,006
(2.83)
(2.83)
(5.28)
(5.28)
$43.70 $47.30
$30.00 $30.00
45.7% 57.7%

(1) Balance sheet value of land estimated based on Company comments of $150 / acre
carrying value
< 28 >
II. Gencorp (GY)
< 29 >
GenCorp, Inc.
GenCorp is a supplier of propulsion technologies to the
aerospace and defense industries
Longstanding reputation as a highly regarded supplier
Founded in the 1950s by Cal Tech scientists
Ticker: GY
Stock Price: $9.75 (1)
Technologies used on NASA missions since inception of U.S. space

program
Capitalization:
Equity market value: $600 million
Enterprise Value: $700 million
Operating Statistics:
Valuation Multiples:
LTM Revenue: $930 million

LTM EBITDAP(2): $113 million
EV / EBITDAP(2): 6.2x
LTM CapEx: $27 million
EV / EBITDAP(2) CapEx: 8.2x
LTM Free Cash Flow: $69 million
FCF Yield: 11.5%
Source: Company and other public documents

(1) All financials in this presentation assume a stock price of $9.75
(2) Earnings before interest, taxes, depreciation & amortization, and non-cash pension expenses
< 30 >
Balance Sheet Snapshot of GY Real Estate Value
< 31 >
GY Owns Several Excess Real Estate Assets

12,000 acres of contiguous, developable raw land adjacent to a major highway in
Sacramento
GY originally acquired this land in the 1950s to test its propulsion systems, but stopped all
tests there over a decade ago
1950s acquisition led to low book value (~$64m)
GY plans to turn 6,000 clean acres into a Master-Planned Community (MPC) called
Easton, currently in different stages of zoning and development
These acres were never used for testing, but were a buffer between the test sites
and civilization
310k square feet of excess Sacramento office space leased to third parties
580 acres in Chino Hills, CA
< 32 >
Civilization Has Encroached on the Sacramento Raw Land

In the 55 years since Aerojet acquired the land, civilization has encroached such that it is now
in a very desirable location, adjacent to a main highway, adjacent to public transportation,
and close to schools and retail and commercial districts
< 33 >
Easton Development in Progress

GY has extensive plans
to turn the 6,000 clean
acres into a master
planned community
called Easton, in five
separate phases
Entitlement and zoning

are in place for the first
1,400 acres
(Glenborough and
Easton Place), with
detailed plans for
residential, commercial,
and office property
development
Source: http://easton-ca.com
< 34 >
Recent Land Sale Comp Available

In late 2010, prominent
Sacramento developer
AKT paid $49,000 / acre
for 17,000 acres of
comparable raw land, in
a less desirable location
GY Land
Source: Sacramento Business Journal
< 35 >
Other Recent Land Sale Comps Available

Current listings of unfinished, un-entitled land parcels in the Sacramento area
confirm the range of $50,000 - $60,000 / acre
Land Parcel
Acres
Price
$ / Acre
Gerber Rd
60 $3,000,000
$50,000
Rogers Rd and Bradshaw Rd
20
650,000
32,500
Rio Linda Blvd and Marysville Blvd
20
1,000,000
50,000
Raley Blvd, Santa Ana
19
1,620,432
87,120
Admiral Lane and Gerber Rd
14
925,000
67,766
El Centro Rd
10
600,000
60,484
24th St at Florin Rd
195,000
53,867
Straw berry Ln and Hw y 99

Average
135,000
54,000
$56,967
Source: Public documents, www.loopnet.com
< 36 >
Sacramento Office Space Generating >$5m of NOI

In addition to the Sacramento raw land, GY also owns 310,000 square feet of
excess Sacramento office space that it leases to third parties
This leasing activity generated $5m of operating income in the LTM (and has
generated as much as $10m before the financial crisis)
Sacramento Office Space NOI
2008
$10.3
2009
$4.4
2010
$5.3
2011
$5.6
LTM
$5.3
< 37 >
Excess Real Estate Valuation
We believe GYs excess

real estate is worth ~
Excess Real Estate Valuation
$370m today, and

potentially much more
Asset
Value
Methodology
as real estate markets
Sacramento Land
$302
6,044 acres @ $50k / acre
recover and the
Sacramento Office Space
Company makes
Chino Hills Land

Total
Value / Share
% of Current M arket Cap
progress on its
development plans
66
0
$368
$5.99
61%
LTM NOI @ 8% cap rate

Conservatism
(1)
Source: Marcato estimates
(1) This site is in the process of environmental remediation
< 38 >
Large, Diversified, Well-Positioned Program Portfolio
< 39 >
Growing Revenue and Stable Margins
With half of revenue from cost-plus contracts, pre-corporate EBIT margins in GYs aerospace
segment have consistently been between 9.8% and 11.7% for the past 8 years
Aerospace Sales
% Growth
Aerospace EBIT
% M argin
2004
489.1
2005
615.8
25.9%
56.6
11.6%
60.2
9.8%
2006
$614.6
(0.2%)
2007
$739.1
20.3%
2008
$725.5
(1.8%)
2009
$787.2
8.5%
2010
$850.7
8.1%
2011
$909.7
6.9%
61.2
10.0%
84.8
11.5%
78.0
10.8%
84.4
10.7%
99.6
11.7%
99.7
11.0%
'04 - '11
CAGR
9.3%
8.4%
< 40 >
GenCorps Core Business is Growing

Company Backlog Provides Revenue Visibility
$1,600
$1,377
$1,400
$1,200
$1,000
$1,422
$1,191
$380
$573
$520
Unfunded
$800
Funded
$600
$400
$902
$811
$804
2009
2010
2011
15.7%
3.2%
$200
$0
% Growth
< 41 >
Free Cash Flow Significantly Exceeds GAAP Net Income
GYs Free Cash Flow

significantly exceeds its
1) Minimal cash taxes
reported GAAP Net

Income, for four separate
2) Substantial non-cash GAAP pension charges
reasons
3) D&A > Ongoing cash Capital Expenditures

4) Non-cash interest expense
< 42 >
Free Cash Flow Significantly Exceeds GAAP Net Income
Adjusting for the

combined effects of all of
these dynamics, it
becomes clear that GY is
trading at 8.2x the
recurring cash earnings
power of its aerospace
and defense business
Revenue
OpEx (incl Pension)
D&A
EBIT
Unusual Items
Interest
Taxes
Net Income
P / E Multiple
GAAP
$930
(862)
(24)
$45
(6)
(26)
(9)
$4
142.8x
Adj. PF Cash
$930
44
(818)
4
(20)
$48
$92
6
0
16
(11)
(9)
$69
$73
Com m ent
Addback Non-Cash Pension
Replace D&A w / Cash CapEx
Addback Non-Cash, PF for Refi
8.2x
< 43 >
Transformative Acquisition
In July, GY announced the acquisition of Pratt & Whitney Rocketdyne from United
Technologies Corporation for $550m
Deal expected to close 1Q 2013
Significant Revenue and Cost Synergies
Financing with cash on hand and new borrowings Highly Accretive Transaction
< 44 >
What is it Worth?
GY-Rocketdyne Pro Form a
GenCorp Rocketdyne
$920
$792
Revenue
(1)
$115
12.5%
EBITDAP
% Margin
Interest
(2)
$149
18.8%
(2)
(3)
(10)
(10)
(25)
$68
Taxes
Working Capital
CapEx
Free Cash Flow
Synergies PF Com bined

$1,712
$50
$314
18.3%
(36)
(38)
(10)
(21)
(46)
(20)
(46)
$164
Adj. TEV / EBITDAP

Adj. TEV / EBITDAP - CapEx
% FCF Yield to Current M arket Cap
4.7x
5.5x
27.3%
Free Cash Flow

Target FCF Yield
Implied Equity Value
$164
10.0%
$1,638
Plus: Excess Real Estate

Total Equity Value
(4)
(2)
FD Shares Out
Im plied Share Price
(1) EBITDAP = Earnings before interest,

taxes, depreciation & amortization,
and non-cash pension expense
(2) Assuming full dilution from the $200m
outstanding 4.0625% convertible
subordinated notes (strike price = $9 /
share)
(3) GY pays minimal cash taxes due to a
combination of NOLs and various tax
planning strategies. We
conservatively apply a 20% tax rate to
the combined entity
(4) Mid-point of Marcato estimated value
368
$2,006
83.7
$23.96
145.8%
Source: Marcato estimates
< 45 >
III. Brookfield Residential Properties (BRP)
< 46 >
Company Overview
Brookfield Residential Properties (BRP or the Company) is a hybrid land
developer and homebuilder
Primarily acquires and develops land for residential use
Ticker: BRP
Occasionally designs and constructs homes and commercial properties
Price: $14.39 (1)
Operates both in Canada and the United States
Capitalization
Mkt. Cap
$1.5B
TEV
$2.8B
Financials:
Valuation Multiples:
2011 Revenue (2)
$819M
P / Q2 2012 TBV
1.5x
2011 Free Cash Flow (3)
$163M
P / 2011 FCF
9.0x
Source: Company filings, research, Bloomberg, CapitalIQ, public commentary and information.
(1)
(2)
(3)
Represents share price of NYSE: BRP. Brookfield Residential Properties is also traded on the TSX under ticker BRP.
Excludes non-recurring lot sales in 2011.
Excludes land acquisition capex.
< 47 >
Land Holdings Dominate The Balance Sheet

Q2 2012 Balance Sheet
Vast majority of the Companys $2.2B in property
inventory consists of long-lived land investments
Q2 2012 Property Inventory by Type
Homes,
12%
RawLand,62%
Land
Development
Single,23%
Land
Development
Multi&Other,
3%
< 48 >
The Residential Development Process

BRP principally participates here
Land Development
Identify
Attractive
Land
Opportunities
Acquire,
Convert and
Entitle Land
Homebuilding
Design and
Construct
Homes
Master Plan
Community
Market and
Sell Finished
Homes
Sell Land to
3rd-Party
Homebuilders or
Begin
Homebuilding
Average ~10 Year Investment Cycle
< 49 >
Diversified North American Land Portfolio
< 50 >
Diversified North American Land Portfolio (cont.)

Q2 2012 Total Lots by Geography
Washington
D.C.,5%
LA/Southland,
4%
Other,0%
NorthernCA,
8%
Calgary,26%
SD/Riverside,
8%
Toronto,9%
Edmonton,17%
Denver,10%
Austin,13%
< 51 >
Home Start Trends are Encouraging

Canadian home starts are within long-term averages and have recovered since the downturn
U.S. home starts are still 50% below long-term averages but have begun to rise
Historical Housing Starts by Country

2,500
1,000
2,000
750
1,500
500
1,000
250
U.S.
Source: U.S. Census and CMHC.
U.S.Avg.
Canada
Jul12
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
0
(000sstarts)
1980
500
0
(000sstarts)
CanadaAvg.
< 52 >
Home Price Trends are Encouraging

Canadian home prices have grown substantially this past decade, up over 100%
U.S. home prices are still ~30% below peak but have begun to stabilize
Historical Indexed Housing Prices (1)

240
220
200
180
160
140
120
U.S.
Source: Teranet Composite 6 and S&P Case-Shiller Composite 10.

(1)
January 2000 indexed to 100.
Jan12
May11
Sep10
Jan10
May09
Sep08
Jan08
May07
Sep06
Jan06
May05
Sep04
Jan04
May03
Sep02
Jan02
May01
Sep00
Jan00
100
Canada
< 53 >
Canada Delivering Nearly All Gross Profit
2011 Gross Margin Breakdown (1)

($Ms)
Lots:
Revenue
Expenses
GrossMargin$
GrossMargin%
2011
U.S.
Canada
Total
$255
($98)
$157
61.6%
$80
($89)
($9)
11.3%
$335
($187)
$148
44.2%
Homes:
Revenue
Expenses
GrossMargin$
GrossMargin%
$323
($268)
$55
17.0%
$161
($146)
$15
9.3%
$484
($414)
$70
14.5%
Total:
Revenue
Expenses
TotalGrossMargin$
TotalGrossMargin%
$578
($366)
$212
36.7%
$241
($235)
$6
2.5%
$819
($601)
$218
26.6%
%ofTotalGrossMargin
97.2%
2.8%
100.0%
(1)
Excludes non-recurring lot sales in 2011.
< 54 >
Concentrated in the Best Canadian Markets

BRPs Canadian land investments are >80% concentrated in oil sands-rich Alberta
Albertas GDP grew 5.2% in 2011, highest in Canada
Despite stronger economic trends and better affordability ratios, Albertas housing prices have
underperformed Toronto and Vancouver since peaking in 2007
Historical Indexed Housing Prices (1)
Housing Price to Median Family Income (2)
140
10.0x
8.9x
130
8.0x
120
6.5x
6.0x
110
100
4.7x
3.8x
4.0x
90
2.0x
Calgary
Edmonton
Toronto
Vancouver
Jun12
Mar12
Dec11
Sep11
Jun11
Mar11
Dec10
Sep10
Jun10
Mar10
Dec09
Sep09
Jun09
Mar09
Dec08
Jun08
Sep08
Mar08
Dec07
Sep07
80
0.0x
Calgary
Source: Teranet, Statistics Canda, CMHC and regional real estate boards.
(1)
September 2007 indexed to 100. Alberta home prices peaked in September 2007.
(2)
Avg. home price / estimated median family income as of July 2012 .
Edmonton
Toronto
Vancouver
< 55 >
BRPs Canadian Markets Are Strong
Home Sales Backlog ($M)
Net New Orders (Units)
$400
500
400
$300
300
$200
$333
$100
200
$239
443
342
100
$0
2Q11
2Q12
2Q11
2Q12
< 56 >
U.S. Looks to be Recovering Rapidly
Home Sales Backlog ($Ms)
Net New Orders (Units)
$125
180
$100
150
$66
$75
120
74
41
90
$50
$36
60
$25
$44
$29
$0
72
30
81
0
2Q11
Central&EasternU.S.
2Q12
California
2Q11
Central&Eastern
2Q12
California
< 57 >
U.S. Looks to be Recovering Rapidly (contd)
July 2012 YTD U.S. Housing Price Growth
8.0%
6.7%
7.0%
6.0%
5.2%
5.0%
4.0%
3.2%
3.3%
3.8%
3.7%
3.0%
2.1%
2.0%
1.0%
0.0%
Composite
10
Dallas
Source: S&P Case-Shiller.
Denver
SanDiego
San
Washington LosAngeles
Francisco
D.C.
< 58 >
Management is Forecasting Strong Growth

Management began to provide FY2012 guidance commentary in Q1 2012
Managements top-line guidance implies strong fundamental growth for FY2012
We conservatively assume flat pricing, margins and no U.S. land sales
FY2012 Management Guidance
($Ms)
HomeClosings:
Canda
U.S.
Actual
2011
ProForma
2011
(1)
Guidance
2012
Change
941
354
941
354
1,200
550
27.5%
55.4%
2,940
534
1,767
534
1,700
3.8%
100.0%
TotalRevenue
$1,008
$819
$907
10.8%
GrossMargin
%Margin
$267
26.5%
$218
26.6%
$244
26.9%
12.2%
32bps
LotClosings:
Canda
U.S.
Strong growth despite

management not
providing guidance on
(1)
Management provided home and lot closings figure only. Pricing and margin assumptions are assumed to be flat from 2011.
U.S. land sales
< 59 >
Why is BRP Unique vs. Other Homebuilders?
Other Homebuilders
BRP
Inventory
Runway
8 Short
9 Long
8 Cash flows needed to refill

depleted land inventory
9 Less need to recycle cash flows

into new land acquisition
Portfolio
Composition
8 Mostly homes
9 Mostly land
8 Recently acquired
9 Old
Carrying Value 8 Marked-to-market

(impairments)
of Property
8 Market prices have
fallen/stagnated since
purchase
9 Book value (original cost)

9 Market prices have since
increased substantially
< 60 >
Long Runway Minimizes Cash Needs

BRPs substantial land and housing portfolio provides it with ~30 years of runway at current
volumes, allowing BRP to generate significant free cash flow while requiring minimal land capex
This is over 3x the inventory of other homebuilders at 2011s run-rate, despite BRPs Canadian
operations running at full speed vs. other homebuilders currently depressed sales volumes
Land and Housing Inventory
(1)
Homesasa%
(2)
ofInventory
30%
41%
77%
27%
33%
35%
28%
32%
70%
41%
YearsInventory
BeazerHomes
DRHorton
HovnanianEnterprises
KBHome
Lennar
Meritage
PulteGroup
StandardPacific
TollBrothers
Average
BrookfieldResidentialProperties
2010
2011
6.6x
8.2x
6.2x
7.4x
6.8x
7.4x
5.4x
6.9x
9.5x
10.3x
4.1x
5.1x
8.6x
8.6x
8.7x
10.3x
13.2x
14.4x
7.7x
8.7x
26.4x
30.1x
(3)
BRPs portfolio consists of

mostly mature land
investments vs. more recent
housing inventory for other
homebuilders
12%
(1)
(2)
(3)
Defined as total lots or home sites / total closings or home deliveries.

Excludes non-recurring 2011 lot sales.
Defined as housing inventory + model homes / total land and housing inventory.
< 61 >
Long-Lived Assets Understate Value

BRPs land and housing investments are recorded on its balance sheet at lower of carrying value
(cost) or fair value
We believe the aged nature of the Companys land assets causes them to be understated on the
Companys balance sheet
Canadian land has an average age of ~8 years in Edmonton and Toronto and up to 15 years in
Calgary
U.S. land has an average age of ~7-8 years
During this timeframe, Canadian real estate has seen a historic appreciation in value
BRP has also taken impairments of ~30% of cost for its U.S. land assets, in-line with other
homebuilders (1)
(1)
Management commentary.
< 62 >
Other Homebuilders Inventories are Marked-to-Market

Due to their U.S. focus and inventory write-downs taken during the recent recession, BRPs
homebuilding peers assets are likely marked near market value
Impairments as % of Beginning Inventory

40%
U.S. Home Prices Since 2006 (1)

110
35%
35%
100
30%
27%
25%
90
22%
22%
22%
80
20%
15%
12%
10%
3%
5%
13%
12%
9%
10%
11%
70
60
3%
Source: S&P Case-Shiller Composite 10, Company filings, research, Bloomberg, CapitalIQ, public commentary and information.
(1)
January 2006 indexed to 100.
May12
Jan12
Sep11
May11
Jan11
Sep10
May10
Jan10
Sep09
May09
Jan09
Sep08
May08
Jan08
Sep07
2009
TollBrothers
May07
2008
PulteGroup
Jan07
2007
Lennar
Sep06
2006
DRHorton
May06
50
0%
Jan06
5%
6%
10%
< 63 >
Market Value of BRPs Assets is Significantly Above Carried Value
Estimated Market Value of BRPs Assets
($Ms)
LandandHousingInventory:
ValueofHomes
ValueofLandSingle
ValueofLandMulti&Other
ValueofRawLand
LandandHousingInventory
HomesCosttoComplete
LandCosttoComplete
"Market"LandandHousingInventory
"Book"LandandHousingInventory
%Increase(Decrease)
$467
$783
$233
$2,244
$3,727
($124)
($289)
$3,314
$2,212
49.8%
TangibleBookValue:
"Market"LandandHousingInventory
Plus:AllOtherAssets
Less:AllLiabilities&MinorityInterest
"Market"TangibleBookValue
"Book"TangibleBookValue
%Increase(Decrease)
$3,314
$499
($1,626)
$2,187
$995
119.7%
< 64 >
Public Trading Comps

Despite its portfolio of attractive land development and profitable Canadian operations, BRP
trades at a substantial discount to U.S. peers
Public Trading Comps
(MsLocalCurrency,exceptpersharedata)
LargeCap:
DRHorton
Lennar
PulteGroup
TollBrothers
Mean
Median
SharePrice
9/24/12
SmallerCap:
BeazerHomesUSA
HovnanianEnterprises
KBHome
MeritageHomes
StandardPacific(3)
Mean
Median
%Above(Below)
52WL
52WH
Mkt.Cap
TEV
P/BV
MRQ
P/TBV
MRQ
(2)
P/Adj.BV
MRQ
(2)
P/Adj.TBV
MRQ
P/E
2012
%Growth
20122013
2013
$22.04
$36.96
$16.76
$36.13
174%
204%
409%
175%
241%
189%
3%
3%
4%
3%
3%
3%
$7,037
$6,743
$6,432
$6,077
$7,967
$10,913
$8,277
$7,168
2.0x
2.1x
3.3x
2.3x
2.4x
2.2x
2.0x
2.1x
3.5x
2.3x
2.5x
2.2x
2.0x
2.0x
1.4x
2.0x
1.8x
2.0x
2.0x
2.0x
1.5x
2.0x
1.9x
2.0x
27.7x
20.9x
32.5x
46.8x
32.0x
30.1x
20.0x
24.5x
18.3x
31.7x
23.6x
22.3x
38.2%
14.8%
77.2%
47.8%
37.1%
43.0%
$3.85
$3.83
$14.63
$41.53
$7.43
186%
330%
191%
204%
242%
231%
204%
4%
5%
7%
2%
6%
5%
5%
$381
$485
$1,128
$1,470
$2,660
$1,592
$2,008
$2,436
$1,985
$3,493
2.1x
NM
3.0x
3.0x
4.1x
3.0x
3.0x
2.1x
NM
3.0x
3.0x
4.1x
3.0x
3.0x
0.6x
1.0x
0.9x
2.5x
2.3x
1.5x
1.0x
0.6x
1.0x
0.9x
2.5x
2.3x
1.5x
1.0x
NM
NM
NM
51.7x
34.5x
43.1x
43.1x
NM
NM
NM
22.9x
21.6x
22.2x
22.2x
NM
NM
NM
125.3%
59.8%
92.6%
92.6%
235%
204%
4%
4%
2.7x
2.6x
2.8x
2.6x
1.6x
2.0x
1.6x
2.0x
35.7x
33.5x
23.2x
22.2x
55.6%
53.8%
137%
6%
1.5x
0.7x
1.5x
0.7x
1.3x
0.6x
1.3x
0.6x
NA
NA
NA
Total:
Mean
Median
(1)
$14.39
BrookfieldResidentialProperties(Book)
BrookfieldResidentialProperties(Market)
$1,475
$2,753
Source:Ca pIQ,compa nyfi l i ngs a ndres ea rch

Note:As ofSeptember24,2012
(1)
(2)
(3)
Represents share price of NYSE: BRP. Brookfield Residential Properties is also traded on the TSX under ticker BRP.
Adjusted for off balance sheet DTAs.
Assumes full conversion of preferred.
< 65 >
Whats BRP Worth?
Illustrative Valuation Range
MedianofComps
($Ms)
"Market"TangibleBookValue
Multiple
EquityValue
TotalFDSharesOut.
ImpliedSharePrice
SharePrice(9/24/12)
%Increase(Decrease)toCurrent
(1)
Adjusted for off balance sheet DTAs.
(1)
Adj.TBV
$2,287
2.0x
$4,573
102.48
$44.63
$14.39
210.1%
TBV
$2,187
2.6x
$5,685
102.48
$55.48
$14.39
285.5%
< 66 >
Ignored by Analysts
Bulge Bracket Research Coverage
BZH
BAML
Barclays
Citi
CreditSuisse
DeutscheBank
GoldmanSachs
JPMorgan
UBS
Total
Y
Y
Y
Y
4
DHI
HOV
Y
Y
Y
Y
Y
Y
Y
7
Y
Y
Y
Y
Y
5
KBH
Y
Y
Y
Y
Y
Y
Y
Y
8
LEN
Y
Y
Y
Y
Y
Y
Y
Y
8
MTH
Y
Y
Y
Y
Y
Y
Y
Y
8
PHM
Y
Y
Y
Y
Y
Y
Y
Y
8
SPF
Y
Y
Y
Y
Y
5
TOL
Y
Y
Y
Y
Y
Y
Y
Y
8
Avg.
6.8
BRP
< 67 >
PerspectivesonBookValue:
FindingHiddenValueontheBalanceSheet
October2012

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Conservative Accounting Rules For Property Create Opportunity

This can lead to major understatements when the market value of a

Undervalued Land On The Balance Sheet

I. Alexander & Baldwin (ALEX)

I. Alexander & Baldwin (ALEX)

Alexander & Baldwin, Inc.

Real estate development pipeline on Hawaii comprising ~88,000 acres

Operating Statistics (2):

Source: Company documents

A&B Properties, Inc.

Development pipeline in Hawaii

Ownership of additional hidden land assets

Source: Company documents

ALEX: Balance Sheet Snapshot

Fully owned development

Retained investment properties

Source: Company documents

An NAV Calculation Will Include All of ALEXs Real Estate Assets

Leased, income-generating commercial real

Development pipeline in Hawaii

Additional land assets

Source: Company documents

Leased Commercial Properties: Hawaii

Unimproved Land (1)

Source: Company documents, Marcato estimates

Leased Commercial Properties: Mainland

Source: Company documents, Marcato estimates

Source: Company documents, Marcato estimates

Map of Important Development Projects

Source: Company documents

Fully Owned Development Projects: Wailea

Wailea resort originally developed by ALEX and sold to

Remaining acreage in various stages of development

Source: Company documents

Fully Owned Development Projects: Maui Business Park II

Phase II of ALEXs Maui Business Park comprises 179 acres of

Source: Company documents

Fully Owned Development Projects: Waihonua at Kewalo

2-acre urban Honolulu parcel acquired by ALEX in 2Q10

341 units planned on 43 floors

Source: Company documents

Fully Owned Development Properties: DCFs

Fully ow ned Developm ent Properties

We note that in 2006, Goldman Sachs performed DCFs of Wailea and

Source: ALEX Real Estate Supplements, Marcato estimates

Fully Owned Development Projects

We believe ALEXs fully

Source: Company documents, Marcato estimates

JV Development Projects: Kukuiula

77% interest in JV with DMB Associates

Source: Company documents

JV Development Properties: DCFs

JV Developm ent Properties

We note that in 2006, Goldman Sachs performed a DCF of Kukuiula,

Source: ALEX Real Estate Supplements, Marcato estimates

Source: Company documents, Marcato estimates

Source: Company documents, Marcato estimates

Additional Legacy Land Assets Provide Hidden Value

Source: Company documents

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