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Bullboard - Stock Discussion Forum Sears Canada Inc SRSCQ

Sears Canada Inc. is a Canada-based independent Canadian digital and store-based retailer and technology company.

GREY:SRSCQ - Post Discussion

Sears Canada Inc > sears canada can do reit like seritage in US
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Post by extremerisk on Mar 20, 2017 12:46pm

sears canada can do reit like seritage in US

Wonder why they haven't done so. On average seritage been able to release the old sears space at 5 times previous rent. Makes sense as department store rents are heavily discounted. Sears2 concept is doing same thing. Up to 4 leases now but this can be accelerated. Am expecting a better q4 report. For the critics who discuss cash burn they could burn no cash if they cut deeper on staff but they are appear to be keeping staff at 17000. Biggest win will come from Re leasing space that is deeply discounted like seritage is doing in US. One can see the path here back to the 10.50 spin off price rather than sub dollar by year end. Sharp operators lampert berkowitz behind this one.
Comment by extremerisk on Mar 20, 2017 5:21pm
Seritage reit was 2.5 billion for 250 locations so valued each one at $10 million. Sears Canada has 95 full line stores and 26 home for total of 121 stores. Using same metric of $10 million values this reit at $1.2 billion or $12 a share. This has long way up to go as tremendous value trapped in all the real estate. Since seritage has already released 35 percent of space at average of 5 times old ...more  
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