Integrated retailer Sears Holdings Corp (NASDAQ:SHLD), with its headquarter at Hoffman Estates in Illinois, have had loads of thought processes, wherein think tank measured and valued various aspects and nitty gritties almost pragmatically, before landing up with a decision to form a quintessential real estate investment trust, commonly dubbed as REIT.
Can Sears’ REIT-Move Woo Investors?
The company owns and operates 1831 specialty retail outlets across the US and its growth had been bearish even in the recent past. Analysts have come down heavily on SHLD. The stock appears bearish to most whereas pragmatic individuals consider it bullish.
Researchers and analysts at Vetr.com have other opinions; four-fifth of analysts consider it ideal to hold on to the shares of SHLD and not just sell them now. There are prudent investors like Bruce Berkowitz who is associated with Fairholme Capital Management; they back the idea of buying SHLD’s shares.
However, analysts, investors and researchers who exemplified the bearishness of the stock points out how the share has fallen from $101 during Kmart-Sears deal in 2005 to around $41.33 – a decade later. This shows a significant fall exceeding 40%, which reflect bearish signs, given that during this premise, S&P 500 index has shot up by 80%!
Growth Plans Conceptualized
The newly conceptualized and formed REIT – Seritage Growth Properties, is a rational move. It has been formed as a trust unit which is ought to buy 254 Kmart and Sears stores. The entire buyout transaction may be valued at a whopping $2.5 billion. Now, how this REIT will come up and launch rights offerings in order to fund these store purchases, will be a matter of inquisitive concern!
Another SHLD Deal
In another deal, Sears Holdings Corp (NASDAQ:SHLD) conveyed its interest to start a joint venture with a company called General Growth Properties; the retailer hopes to sell 12 stores located in the malls of General Growth and then lease them back later.