NEW YORK — Activist investor Starboard Value wants Macy’s to tap the value of its real estate assets by splitting them off into separate companies.
Starboard’s plan published Monday urges the department store operator to create two joint ventures. One would hold its properties in New York, San Francisco and other major cities, while the other would hold its mall properties. Altogether, Starboard said the department store’s real estate is worth about $21 billion.
Creating the joint ventures with real estate partners could boost the value of Macy’s stock to $70, Starboard said, nearly double what it’s currently worth. Starboard has a 1 percent stake in Macy’s, according to FactSet.
A Macy’s representative did not immediately respond to a request for comment.
Shares of Macy’s rose $2.08, or almost 6 percent, to $37.97 in afternoon trading Monday.
The plan comes after Macy’s had a rough holiday season.
Last week, the company reported that sales at existing stores and excluding licensed departments fell 5.2 percent in November and December. Macy’s said it would cut 4,800 jobs from its total of 163,000 workers.
Macy’s Inc., which has corporate offices in Cincinnati and New York, operates about 900 stores, including Bloomingdale’s and Bluemercury.
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