IB Net Payout Yields Model

Sears Holdings: Promising REIT Details

  • Sears Holdings continues moving forward with unlocking value via the sell and leaseback of real estate assets.
  • The stock continues trading substantially below the value of the real estate.
  • The stock is attractively priced at $40, but the company needs to show more progress towards reducing cash burn with the Q1 earnings report on June 8.
Back in April, Sears Holdings (NASDAQ:SHLD) announced several agreements regarding selling real estate assets to a REIT and several joint venture partners. The recent S-11 filing for Seritage Growth Properties provided key details, including the stores involved and the percentage of the locations that already have non-Sears leases. Some of the details including the involvement of General Growth Properties (NYSE:GGP) and Simon Property Group (NYSE:SPG) in the JVs and the real estate valuations were encouraging.

Read the full article on Seeking Alpha.

Disclosure: Long SHLD. Please review the disclaimer page for more details. 


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