Canadian Pacific Railway Limited (USA) (CP), The Procter & Gamble Company (PG), General Growth Properties Inc (GGP): Three of Pershing Square’s Top Picks

Another revenue driver of the company is its ‘’Sears Redevelopment Plan’’ of approximately $572 million. Due to the rising demand for in-store leasing and departmental stores, the redevelopment plan is being executed. It has filed an application for expansion to add another center court at Ala Moana Center, along with 1,000 new parking stalls in an additional five-level parking structure located at the Sears store.

At present, the company generates net operating income of 10% from its Sears store and is expecting an increase in net operating income of between 8% and 10% on the additional redevelopment plan by 2015. It is planning to spend an additional $500 million next year.

Conclusion

The bulk and merchandise segments of Canadian Pacific Railway Limited (USA) (NYSE:CP) will accelerate company’s revenue in future.

The Procter & Gamble Company (NYSE:PG)’s entrance into developing countries will boost its earnings. Its long-term history of dividend payment will help it to gain investor confidence.

A new rental property and the redevelopment plan of General Growth Properties Inc (NYSE:GGP) will increase its portfolio, thereby increasing rental income.

Therefore, a buy is recommended for all of these stocks.

Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble.

The article 3 of Pershing Square’s Top Picks originally appeared on Fool.com.

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