Activist investment firm Starboard Value says retailer Macy's could boost its share price by spinning off its real estate into a separate company or forming a joint venture, saying the shares are worth almost double their current price.
Companies including Sears have made similar real estate moves, which are intended to let them get more revenue from properties they own.
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At an investor conference Wednesday, Starboard CEO Jeffrey Smith said Macy's owns $21 billion in real estate and that its stock could be worth $125 a share.
Macy's Inc. has about 885 stores under the Macy's and Bloomingdale's brands. The company says it is evaluating the creation of a real estate investment trust to see how it would affect its business.
Its shares rose 7.9 percent to $72.01 on Wednesday.