Seeking Alpha

ISI Group thinks J.C. Penney (JCP) could create some value by converting hundreds of locations...

ISI Group thinks J.C. Penney (JCP) could create some value by converting hundreds of locations into a REIT-like entity which would sublease space to other retailers. By the firm's estimation, JCP would be valued at $46 with the REIT concept accounting for about $40 of the share price. Though the idea assumes a lot more interest in mall real estate space than the market is indicating, any mention of a REIT play by a retailer is typically enough to give shares a nudge. JCP +1.2% premarket.
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  • neiman123
    , contributor
    Comments (14) | Send Message
     
    Have any of these people ever read a Reciprocal Easement Agreement. What is the benefit for a mall owner to allow Penney to poach potential tenants. In bankruptcy maybe they could play a little with the real estate but remember Vornado knows how shopping centres work and they dumped.
    18 Mar 2013, 03:23 PM Reply Like
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